Derry City Council has revealed a masterplan that will see at least £9m spent developing the former Culmore landfill site.
Most of the cost will go towards making the site safe and extracting methane gas, which will be used for electricity generation.
The works will also include landscaping and the development of a community and education building.
The mayor of Derry, Councillor Colum Eastwood, welcomed the decision.
He commented: "It will provide play areas, a park area, sports facilities, and community buildings. It's going to be a massive project. We have to ensure it's done safely and done properly. We could probably do it in a year and a half but we need to be careful and there are people living in the area. We will spread it out over three years so that the residents are happy with the project."
Councillor Eastwood also commented on the large amount of methane gas at the site and how its extraction can benefit the community.
"What we are trying to do is to extract that gas and sell it back to the National Grid as electricity, which will save us money in the long term."
The site was last used for landfill four years ago.
(JG/KMcA)
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