The deputy First Minister Martin McGuinness and Infrastructure Minister Chris Hazzard confirmed the disused listed building will be transformed into a transport hub for Derry.
The Old Waterside station was chosen as the location of the new hub after a public consultation held in 2013.
A Grade 2 listed building, built in the 1870s, the site hasn't been in use for some time.
“The transport hub will support the growth of the local economy and is of massive importance to the city of Derry and beyond," remarked Martin McGuinness, during a visit to the site of the old station earlier today.
“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," he added.
Infrastructure Minister, Chris Hazzard said the new transport project would "provide a train station that complements regeneration and transforms a historic building into one fit for use today and for generations to come."
The news was also welcomed by Translink Group's Chief Executive Chris Conway.
“We are very much looking forward to building this exciting new transport hub," he said
Mr. Conway said he hoped the new major piece of infrastructure "encouraged a modal shift from car to public transport".
"As an iconic building in the city, the new hub [will help provide an] integrated and convenient services to encourage more active travel for a healthier region," he continued.
"It will also act as an important gateway to the North West for visitors as well as help to regenerate the local area and make it more attractive to business and investors, helping to create local jobs and enhancing the local economy,” he added.
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