Work is set to begin on a new £600,000 greenway network through Rosemount and the Glen.
Quinn Automatic Ltd. will build the new greenway through the Creggan Burn Park.
The Mayor of Londonderry, Brenda Stevenson, said: “I am delighted that a contractor has been appointed and that plans for the Creggan Burn Park Greenway can now progress to the next stage.
“We have already seen how successful the Waterside Greenway beside St Columb’s Park has become, with a regular flow of walkers, joggers and cyclists. It’s fantastic to see the best being made of our green spaces, especially in urban areas, and greenways such as these open the city up to new users.
“This is a great opportunity to both promote exercise and highlight the importance of respecting and properly utilising our green environment.”
DRD Minister Danny Kennedy said: “Active Travel is a long term strategy with the aim of encouraging local communities to include more walking and cycling in their everyday travel plans.
“An important element of the overall strategy is the implementation of a number of demonstration projects. This project, successfully completed with funding support from my Department, tangibly demonstrates continued commitment and support to help promote walking and cycling as a realistic and healthy choice of transport, particularly beneficial to people making short journeys in urban areas.
“I congratulate all the stakeholders who, collectively, have brought this particular project to a successful conclusion.”