A 65-bed care home and 68 semi-independent living units will be developed on Culmore Road.
Welcoming the planning decision, SDLP Ballyarnett Councillor Angela Dobbins said the development will provide 'fit for purpose' accommodation as well as the benefit of communal facilities.
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"This is a site of both historical significance and high scenic value and I am grateful that both the developers and our planning department have kept these facts in mind and have ensured that the character of the existing buildings and surrounding unspoilt nature of the river Foyle will be protected," she said.
"It is a recorded fact that people are living longer and developments like these offer residents a secure, comfortable environment where independence can be maintained and, if necessary, assistance is close by."
(LM)
