The Department for Infrastructure is to carry out improvements at Circular Road.
The improvements come after intervention from MLA Maurice Bradley.
On Friday, a letter to the East Londonderry MLA confirmed that alterations to the existing lines and the amendment of others, will be carried out in a bid to stop vehicles parking on footpaths at the lower end of the street, close to the junction with Millburn Road.
DFI has also confirmed that improvements will also be carried out to improve access to the rear of properties.
MLA Bradley said: “My office and I have been working with residents in Circular Road in a bid to improve parking in and around the area.
“Currently, residents have serious problems parking near their homes.
“Many find that they have to use one of the Council paid carparks once they leave their space in the morning.
“I would like to thank the Department for their intervention, and I hope that it will make some difference to the residents in the area.
“I have been pressing the Department for residents’ only parking schemes for the Causeway Coast and Glens area, however I have been advised that until a pilot programme in Belfast is evaluated, no others will be rolled out.
“We also have the added difficulty of not having a Minister due to the stalemate at Stormont,” said Bradley.
“I am hopeful that these small alterations will make some difference to the residents,” said Bradley.