Sandra Duffy is among a series of candidates announced by the party.
Voters will go to the polls across the North of Ireland’s 18 constituencies on Thursday, July 4.
The seat is currently held by Mr Eastwood, the SDLP leader, who has a 17,110 majority.
A former SDLP stronghold, once the powerbase of John Hume and Mark Durkan, it was taken by Sinn Fein in the 2017 election, before Mr Eastwood’s 2019 landslide win.
Sinn Fein will hope that Ms Duffy’s high profile can see it mount a serious challenge.
She served as mayor of Derry and Strabane District Council in 2022-23.
Ms Duffy said: “I want to seize the huge opportunities available to us to create more and better jobs, expand our university, and put Derry firmly on the map as an exciting place to live, work and study.”
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