FP McCann Ltd is to undertake the £7 million project, aimed at transforming the city's Guildhall Square and Waterloo Place.
The firm has already been behind similar schemes in Belfast city centre and Derry's Newmarket Street.
Social Development Minister, Ms Ritchie, said: "This is exciting news for the people of Derry City. This multi-million pound scheme is by far the most significant investment ever made in public spaces within the city centre and it will entail detailed construction and engineering work.
"This includes the installation of impressive new water features in Guildhall Square, specially created public art works and a striking canopy structure in Waterloo Place."
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The local business community has welcomed the department’s investment in the public realm scheme.
Chairman of the City Centre Initiative, Brendan Duddy, said: "This is a major boost for the local business community operating within Waterloo Place and represents further evidence of growing confidence in this city.
"I want to congratulate the Minister and her officials in the North West Development Office for their continued support and investment in the regeneration of our city centre."
In August the contractor will begin a package of preliminary enabling works for the scheme.
The construction project is expected to take 17 months and will be completed in spring 2010.
Throughout the construction period FP McCann Ltd will operate an office in the city to house the Construction Manager and his team.
This will facilitate communication channels with business and property owners during the construction activities.
A public exhibition of the scheme's proposals will go on display in late summer and will remain in place throughout the construction period.
(PR/JM)
