The company will develop the trail to add to recreation facilities at Leafair in Shantallow.
The Leafair Jogging Trail is to be built around the existing grass football pitch and will be floodlit at night time to provide a safe environment for walking and jogging.
Mayor of Derry City and Strabane District Council, Alderman Hilary McClintock, said: "This is an exciting development for the Shantallow area and will perfectly complement the play area, outdoor gym and synthetic and grass playing pitches that have been developed to date.
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"The trail is beautifully located on elevated ground with stunning panoramic views of the city and is the perfect location to go for a walk or jog, offering the added safety of floodlights on dark nights.
"I see this as an investment in the future both in offering local people a suitable environment to fulfil their fitness goals and encouraging them to make healthy choices by taking regular exercise."
The project is a jointly funded initiative by Council, the Department for Communities and the Northside Development Trust. It is scheduled to be completed by late spring.
(LM/MH)
