The Government is to spend €2.5m on a new North West Gateway Initiative.
The North West Gateway Initiative is to support economic regional development and to help create jobs and promote investment in the North West.
The Foreign Affairs Minister Charlie Flanagan has said the Government also supports the A5 Derry to Dublin road project - as it will help release the economic potential of Derry and Donegal.
Minister for North South Co-operation Seán Sherlock, TD, also welcomed the A5 route as it facilitates better all-island connectivity.
Mr Flanagan made the announcement during a visit to Derry today.