The process was launched by Derry City and Strabane Council.
The artwork will recognise the industrial heritage of the city with specific reference to the women who worked in the city's shirt factories.
The council has secured funding of £140,000 from the Department for Communities to progress design works for the redevelopment of the Harbour Square located within the Historic City Conservation Area of the city.
The Harbour Square Redevelopment project is an integral part of the Central Riverfront Development Plan outlined within the draft City Deal proposal and will see the creation of a high quality public realm that links the historical core of the Walled Town to a new, attractive and lively riverfront zone.
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Mayor of Derry City and Strabane District Council, Alderman Graham Warke, said: "Our city's social, economic and cultural life was shaped by the textile and clothing industry and it is therefore right and fitting that that contribution is recognised with a permanent artwork.
"The site is a prominent location in our city centre with the backdrop of the historic Guildhall and Harbour House adjacent to the River Foyle and a natural landing to the new Peace Bridge.
"It is an ideal venue to celebrate Women's industry communicating locally and globally and affirming people's pride and confidence in the area.
"We want to champion innovative thinking and a bold vision by delivering a new benchmark in public artwork to Northern Ireland and I am excited to see the plans of the winning submission."
Communities Minister Deirdre Hargey added: "I am delighted that the Harbour Square public realm project has commenced the process to appoint an artist. The design and manufacture of a public art installation will recognise the incredible women who worked in the factories of the city and acknowledge the vital role they played in the development of Derry's economy."
The maximum proposed budget for the Art Installation Project will be £200,000 to include the design, manufacture and installation of the final piece.
The Art Installation will be delivered by an artist led team who will work in conjunction with the Public Realm Integrated Consultant Team and Integrated Supply Team in the delivery of the overall Harbour Square Public Realm Scheme.
