The works will extend a 1,000 metre distance from the junction of the Circular Road to Lonemoor Road.
The scheme is expected to be completed in mid-January 2017.
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Infrastructure Minister Chris Hazzard said: "These works will deliver significant improvements to the strength and road surface quality of this stretch of carriageway. The benefits of the re-surfacing scheme will help meet the needs of the local economy and improve transport connections for people, goods and services."
A full closure of the road will be required during the final week of the works and diversions will be put in place.
(CD/LM)
