A new transport hub is to be developed at the Old Waterside Station site in L'Derry.
The station was the public's preferred site following a consultation in 2013.
Deputy First Minister, Martin McGuinness, said: "This is an ambitious project on the Old Waterside Station which will balance preserving the historic building and also meet the transport needs of the future.
"We will only attract more people to use public transport if we have the right infrastructure in place and the development of this transport hub is an important piece of the jigsaw in the north west."
Infrastructure Minister Chris Hazzard said: "Over the last few years, much has been done to transform both sides of the Foyle. The new transport hub project will provide a train station that complements regeneration and transforms a historic building into one fit for use today and for generations to come.
"Investing in public transport is vital if we want to attract investment, talent and tourism. Alongside projects like the A5 and A6 and the development of City of Derry Airport, those living west of the Bann are set to see a real change in the development of the local infrastructure over the coming years."
(CD/JP)
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