Fahan Street remains closed and residents from 13 properties remain out of their homes as work continues to make the area safe.
The cordon has now been widened to include part of the City Walls, while a rest centre has been opened at Brooke Park Leisure Centre to accommodate residents whose homes were evacuated.
The alert follows the discovery of a number of suspicious items in Fahan Street, reported to police shortly after 11am today.
Derry City and Strabane Area Commander, Chief Superintendent Ryan Henderson said: “First of all, I want to thank the local community for their patience and understanding during the course of this protracted security operation, in particular every resident who has been affected.
“Our primary aim throughout the course of this operation is to keep our community safe.
“However, I understand the security operation has caused, and continues to cause significant disruption, but it is required in order to keep people safe.
“We will endeavour to work through this situation as quickly as we can and get people back into their homes.
“But everyone’s safety is our top priority and we will not take any risks with that.”
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