Derry City and Strabane District Council says it is exploring options regarding its joint bid with Belfast for the title of European Capital of Culture in 2023.
Last week, the EU commmission said applications from the UK would not now be considered in light of Brexit.
The two councils say they are working with the UK's Department of Digital, Culture, Media and Sport (DCMS), to explore the options available.
Representatives of all five bidding cities have been invited to attend a meeting next week in London to receive an update.
Derry City and Strabane District Council says once these negotiations have concluded, they and their partners in Belfast will proceed with the publication of the details of the bid.
The council has thanked all involved for their support and enthusiasm which is says has shaped an outstanding bid.
Whatever happens, the council says, it will build on the strong foundations established and progress further with these relationships.