The High Court has ruled in favour of the A6 dual carriageway at Toomebridge.
Sinn Féin leader in the North Michelle O'Neill welcomed the ruling.
She said: "The A6 upgrade represents an investment of over £160m and has long been a key priority for Sinn Féin.
"It is a key infrastructural project to help redress regional balance and was significantly moved forward by Sinn Féin Minister Chris Hazzard when preparatory work began last year.
"Today's court ruling is an endorsement of the Minister's approach and clears the way for the work to move onto the next stage.
"When the project is completed in 2019, it will greatly reduce travel times between Derry and Belfast, a development which will be greatly welcomed by the many thousands of people who make that journey every day."
A spokesperson for the Department for Infrastructure said: "Today's decision means 18,000 road users and the local community are set to directly benefit as the new dual carriageway will reduce journey times and improve road safety. The scheme is predicted to result in a saving of almost 600 collisions over its 60 year economic life. The ruling has also recognised the care and attention we take, with the statutory environmental bodies, to preserve, protect and develop environmentally sensitive areas under consideration for road development.
"The local construction industry will also see a considerable benefit with this £160million scheme delivering local jobs and investment. The Department has committed to introducing 'Buy Social' clauses into this contract which will generate new entrant trainee employment in the form of apprenticeships and graduate jobs. The works will specifically create between 15-20 new paid employment and training opportunities over the construction period."
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