The PSNI in Foyle say that Crawford Square remains closed to traffic this morning while police and Army Technical Officers investigate an explosion in the area last night, Monday.
However, motorists are advised that Northland Road is open to traffic.
Meanwhile, the North West Methodist Mission condemned the bomb attack.
Speaking shortly after news of the attack, Mission Director Liam Milligan said: “We wish to condemn this attack in the strongest possible terms. Those who carried it out demonstrate a complete disregard for human life and the safety of residents living in the Crawford Square area.
“Families with young children live in the immediate vicinity of the attack and it is extremely fortunate we are not reporting serious injury or loss of life. Our sympathy and support go to the families who had to leave their homes.
“We would like to commend the PSNI and the Fire and Rescue Service for their response to the incident. I would also like to commend the efforts of our night staff, our Hostel Manager, Sean Boyle and On Call Managern James Jenningsn for their response and effort in ensuring the safety of our residents”.
Justice Minister David Ford has said the explosion was “an attack on the entire community”.
“Whoever planned, assembled and set off the bomb in Derry on Monday night have nothing positive to offer the community. It put the lives of local people at risk and forced them to leave their homes. Reports of a second device clearly show the intent to cause injury.
“Damage was also caused to local businesses, including the Probation Service, who provide an invaluable service protecting the community through managing offenders and helping them reintegrate into the community.
“Anyone with information should pass it immediately to the police or to the Crimestoppers charity on 0800 555 111.”