Using a cursor with dynamic SQL in a stored procedure

A cursor will only accept a select statement, so if the SQL really needs to be dynamic make the declare cursor part of the statement you are executing. For the below to work your server will have to be using global cursors.

Declare @UserID varchar(100)
declare @sqlstatement nvarchar(4000)
--move declare cursor into sql to be executed
set @sqlstatement = 'Declare  users_cursor CURSOR FOR SELECT userId FROM users'

exec sp_executesql @sqlstatement


OPEN users_cursor
FETCH NEXT FROM users_cursor
INTO @UserId

WHILE @@FETCH_STATUS = 0
BEGIN
Print @UserID
EXEC asp_DoSomethingStoredProc @UserId

FETCH NEXT FROM users_cursor --have to fetch again within loop
INTO @UserId

END
CLOSE users_cursor
DEALLOCATE users_cursor

If you need to avoid using the global cursors, you could also insert the results of your dynamic SQL into a temporary table, and then use that table to populate your cursor.

Declare @UserID varchar(100)
create table #users (UserID varchar(100))

declare @sqlstatement nvarchar(4000)
set @sqlstatement = 'Insert into #users (userID) SELECT userId FROM users'
exec(@sqlstatement)

declare users_cursor cursor for Select UserId from #Users
OPEN users_cursor
FETCH NEXT FROM users_cursor
INTO @UserId

WHILE @@FETCH_STATUS = 0
BEGIN

EXEC asp_DoSomethingStoredProc @UserId

FETCH NEXT FROM users_cursor
INTO @UserId

END
CLOSE users_cursor
DEALLOCATE users_cursor

drop table #users

First off, avoid using a cursor if at all possible. Here are some resources for rooting it out when it seems you can't do without:

There Must Be 15 Ways To Lose Your Cursors... part 1, Introduction

Row-By-Row Processing Without Cursor

That said, though, you may be stuck with one after all--I don't know enough from your question to be sure that either of those apply. If that's the case, you've got a different problem--the select statement for your cursor must be an actual SELECT statement, not an EXECUTE statement. You're stuck.

But see the answer from cmsjr (which came in while I was writing) about using a temp table. I'd avoid global cursors even more than "plain" ones....

Another option in SQL Server is to do all of your dynamic querying into table variable in a stored proc, then use a cursor to query and process that. As to the dreaded cursor debate :), I have seen studies that show that in some situations, a cursor can actually be faster if properly set up. I use them myself when the required query is too complex, or just not humanly (for me ;) ) possible.