The Department of the Environment has approved plan for a major science park on the site of the old army base at Fort George.
It will be part of the North West Regional Science Park, which will have a second base at Letterkenny Institute of Technology.
It's hoped the venture could create up to 280 direct jobs, and stimulate more IT investment across the region.
Foyle MLA Colm Eastwood, a former Mayor of Derry who now works as Private Secretary for the Department of the Environment says the Derry campusd will capitalise on the Kelvin link and will underpin the developments at the University of Ulster at Magee.
Mr Eastwood said obtaining planning permission is the first key milestone for a development that will among other things, support business start-ups and self-employment in digital media and the high-tech sectors. A formal planning application will appear before Derry City Council, but following the DOE recommendation, it should simply be a formality. Papers relating to the proposed four story building were sent to the council by the DOE yesterday.
Mr Eastwood has also indicated he anticipates some very good news on funding for this project in the near future.