Unconfirmed reports say that the device was left in a bag on the doorstep of the officer’s home in Dungiven.
The PSNI said the bomb was discovered on Monday morning.
It is understood the target of the attack is a young married mother.
Assistant Chief Constable Mark McEwan, head of the PSNI’s Crime Operations Department, said it was being treated as “an attack” on a part-time police officer.
Part of the Ballyquin Road close to the village remains closed as police examine the scene.
Motorists have been advised to avoid the area.
ATO are currently at the scene trying to make the device safe.
ACC McEwan said: “I can confirm that the device is viable and investigations are ongoing to establish the full circumstances.
“We are treating this as an attack on a member of staff who also serves her community as a part time police officer.”
Police have said the road, which is closed at its junctions with Camnish Road and Curragh Road, is expected to remain closed for some time.
First Minister Arlene Foster described the attack as “reckless and futile”.
She said she had spoken with the officer “to convey our support and utter condemnation of those who sought to harm her and her family”.
“We salute her bravery and long service to our community,” she added in a social media post.
Deputy First Minister Michelle O’Neill described the attack as “reprehensible”.
“Those involved in this attack will not succeed in their regressive and toxic agenda.
“All politicians must unite against these reckless actions. We must keep building the peace for our children.”
British Secretary of State Brandon Lewis said: “The attempted murder of this police officer is absolutely abhorrent.
“I completely condemn the actions of those involved. Those who try to attack public servants have nothing to offer the communities they claim to represent.
“I want to convey my support for the officer concerned.”
Ulster Unionist leader Steve Aiken also tweeted his condemnation.
“This cowardly attempt on the life of someone who is courageously putting her selflessness to the good of all of our community must be utterly condemned by all – there must be no place for terrorism in our society.”
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