The city is in the running, along with Birmingham, Sheffield and Norwich and a decision will be announced in Liverpool on Thursday.

The bid team, along with Deputy First Minister Martin McGuinness, travelled to Liverpool last month to deliver their final pitch.

Derry City chief executive Valerie Watts said: " The bid team were very, very focused. Categorically we could not have done any better, every effort has gone into producing what we hope is the winning bid."

Leaning heavily on its emergence from violence to become a regional centre for the arts, it is predicted Derry could enjoy a cash windfall if successful.

The year 2013 will mark the 400th anniversary of the Plantation of Ulster by settlers from Great Britain and the building in 1613 of the Walled City of Derry.

But bid organisers are looking to the future with an explosion of theatres and performing spaces like the Millennium Forum and Nerve Centre for youth culture.

Mrs Watts added: "There is a great sense of hope in the city and its ability to galvanise hope across all parts of the city so that everyone is looking to the same unified goal or prize."

Belfast failed to make the shortlist of UK cities for the European Capital of Culture 2008 bid. But Mrs Watts said Londonderry's was a much better prospect.

"It is a clearer bid and that is probably down to the clear specifications that the judging panel were looking at from the bidding cities," she added. These included its social and economic impact as well as the legacy left from the bid.