Emergency services responded to a fire reported at 6.05am on Saturday at a derelict building located on Grainan Drive.
The incident occurred at approximately 06:00 BST, involving a structure previously used as a gymnasium.
Authorities have confirmed that residents from an adjacent property were evacuated due to the developing situation.
Law enforcement officers are currently seeking details regarding the cause and origin of the flames.
An appeal for information has been issued by police concerning the early morning event in Derry.
The blaze was initially reported as affecting a vacant site in the Grainan Drive area.
No specific injuries or casualties have been confirmed at this stage of the investigation.
Further updates will be provided as more information becomes available to the public.