The 2.7km extension to the popular Waterside Greenway will link Stradowen Drive in Strathfoyle to Derry city centre and the wider greenway network.
It will also provide a commuting route to Foyle Port and Maydown.
The greenway is being developed by Derry & Strabane Council in partnership with a number of Stormont departments.
Local community activist Paul Hughes has welcomed the start of construction work on the project.
He said: “Plans for this project were first presented to the local community back in 2012. It’s been a ten year campaign and I would like to thank DCSDC, DAERA, DFC and DFI for working together in the spirit of ‘New Decade, New Approach’ to get this project over the line. This shows what can be achieved when political parties and government departments work together.
“A special thank you to DCSDC’s Mike Savage who is doing an excellent job coordinating this project and taking it forward. When completed, this greenway will be transformative for the city and district. It will connect communities, tackle rural isolation and improve health outcomes. I would like to thank the local residents of Strathfoyle for their dedication and relentless campaigning for this over the years. We are all really looking forward to the greenway opening.”