A proposal which could see the union flag fly from Derry City Council headquarters on designated days is to be put forward by the Alliance Party at Stormont.
Anna Lo will propose the flag be flown at all council headquarters as an Alliance amendment to the Local Government Bill.
MLAs are debating a bill which sets out what powers the 11 new local councils will have and how they should be run.
The Ulster Unionist Party has already tabled an amendment to the same bill, calling for the flag to fly 365 days a year at Belfast City Hall.
There were widespread loyalist protests throughout the North, including Derry, when Belfast City Council limited flying the flag to designated days in 2012.
Ms Lo said the flying of the union flag on designated days was a “compromise agreement” that recognised Northern Ireland’s position within the UK, while acknowledging that “we live in a shared society.”
She added: “It allows for the union flag to be flown with dignity and respect, and is in line with British tradition as stated by the College of Arms.
“Designated days is the recommendation of equality guidance and is the policy at Stormont and councils such as Lisburn.
“It is the only policy that will help deliver a shared future.”