In addition to the renovation scheme, an extension was also built onto the Brade B1 listed building on the walled city's Artillery Street.
The Arts Council contributed over £1.3m towards the works. Its chairman, Rosemary Kelly, said the versatile venue has touched just about everyone in the north west, regardless of age or background.
"I have no doubt it will build on its unique heritage in helping to keep the arts at the heart of Northern Ireland’s social and economic regeneration," she said.
The project was recently awarded the prestigious BURA (British Urban Regeneration Association) Awards 2009 for 'Best Practice in Regeneration'.
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The Playhouse is the first arts centre in Northern Ireland to have achieved this.
Pauline Ross, Founder and Director of The Playhouse, said: "It only seems a blink of an eye from when The Playhouse set up in these wonderful buildings in 1992, and although they have been bustling with activity ever since, these much loved buildings were in need of major renovation.
"It has been an incredible journey and we look forward to opening our doors to the public, giving more people the opportunity to experience great art."
Arts Minister Nelson McCausland said his department had pledged over £600,000 towards the building works.
"This investment has not only produced a first class facility for the Playhouse but will also support and develop the arts more widely in Londonderry," he said.
The refurbished Playhouse provides disability access and boasts modern facilities such as a dance studio, extra workshop space, educational facilities, spacious theatre and auditorium, new reception area and a café bar.
Funding was also provided by the Heritage Lottery Fund, The International Fund for Ireland, the Northern Ireland Tourist Board, The Honourable The Irish Society, Ulster Garden Villages Limited, Environment and Heritage Service Northern Ireland, Adapt NI and the Department of Trade, Enterprise and Investment.
(PR/KMcA)
