Several homes were evacuated and a man treated in hospital for burns after a car was torched in the Waterside this morning.
It's understood a gas cylinder was placed in the car with potentially explosive effect before it was set on fire.
Detectives are appealing for information and witnesses following the incident at a house in the Seven Oaks area.
Speaking this morning Sinn Féin Councillor Christopher Jackson said: "A number of homes have been evacuated in the Seven Oaks area due to a suspect device. I would urge anyone affected by this incident to go to the Foyle Arena on the Limavady Road.
“It must be very upsetting for anyone caught up in this."
Police confirmed that shortly after 3.30 a.m. this morning, police received a report that a vehicle parked at a dwelling had been set on fire.
On arrival of police it was established that a small gas cylinder had also been placed in the vehicle.
It is believed a petrol bomb was also thrown at the house.
A male sustained injuries whilst attempting to extinguish the fire in the car.
He attended hospital for treatment to his injuries, which are not believed to be life threatening.
Detective Sergeant Brian Reid would appeal to anyone with dashcam footage or anyone who noticed any suspicious activity or vehicles in the area to contact detectives at Strand Road on the non-emergency number 101, quoting reference 367 24/06/18.
Alternatively, information can also be provided to the independent charity Crimestoppers on 0800 555 111, which is 100% anonymous and gives people the power to speak up and stop crime.
For your guidance – Police are working to establish a motive for this incident. All evacuated residents have been allowed back into their homes.