Contractor Adman Civil Projects has now begun work on the Clooney Greenway project, which utilises a route through the Foyle College and Ebrington Primary school campus.
The scheme was first proposed in 2010 to help enhance off-road connectivity in the Waterside area.
Mayor of Derry City and Strabane District Council, Councillor John Boyle, welcomed the progress.
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"I am delighted for residents of the Waterside that this long awaited development is now close to becoming a reality," he said.
"The completed project will allow many local children and young people to access a safe and convenient route to and from school and further link-up the extensive greenway network in the Waterside area.
"The project has been the result of a lengthy consultation, planning, acquisition of lands and funding process and I would like to commend the Clooney Greenway Steering Group who have worked closely in developing and progressing each stage of the project."
The 0.94km-long greenway will be completed with an asphalt surface, paladin fencing and lighting throughout.
(CM)
