Work is due to get underway in the New Year on the rebuilding of St Mary’s Youth Club on Fanad Drive, Creggan.
Creggan Sinn Féin Councillor Kevin Campbell said when completed, the new facility will be an asset to the local community.
“The announcement that £2.3 million is to be invested in the club has been fantastic news for the people of Creggan and the wider Derry public.
“The investment will allow a modern youth facility to be built right in the heart of the Creggan community in an area of great social and economic need,” Colr. Campbell said.