Urban theory has extensively treated the neighborhood concept in the past century. This paper treats not only the neighborhood concept, but also the neighborhood patterns in the past century. This has been the cause of inefficiency in contemporary urban design. In most of the Modern urban designs, the neighborhood is conceptualized from the point of view of physical or demographic aspects. However, a review of historic quarters reveals that what formed the neighborhoods were not physical or demographic factors, but rather social, cultural, political, ethnic, economic linkages or sometimes the natural site conditions. Contemporary neighborhood theories are criticized for their inflexible definition of boundaries, and lack of concern for the linkages between the neighborhood and the city. A flexible organization which enhances the internal linkages within the neighborhood, while facilitating a fluid access to other pats of the city will be instrumental in reviving the neighborhood concept in contemporary cities. The rights of residents for accessing facilities are thus recognized, while the fluctuations in the demand for urban facilities are catered for. The paper reviews some contemporary theories of neighborhood to present an appropriate model for revitalizing existing neighborhoods.