Letters were penned to the permanent secretaries of the Department of Health, the Department for the Economy and Department of Finance requesting that they give urgent attention to the Ulster University business case.
In response to the letter, the Department of Health strongly indicated the project would require ministerial approval.
SDLP Councillor Sinead McLaughlin has expressed concern at the response.
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She said: "This is disappointing news for the entire region and poses a setback for the City's Strategic Growth Plan. The expansion of Ulster University at the Magee Campus is a key priority for the SDLP; university expansion will be a key catalyst for economic development for the North West region and any further delay to this process is simply unacceptable.
"I have proposed that Derry City & Strabane District council seek an urgent meeting the Secretary of State, Karen Bradley MP, together with senior Civil Servants to progress this matter. Any further delay beyond May 2019 might delay student intake back until September 2021.
"The expansion of Ulster University is just one of many vital economic development programmes that is being held back by the Sinn Féin and DUP failure to take positive action to re-establish the Executive.
"Communities across the North West deserve better than this."
(CM/MH)
