Both the Ulster Political Research Group (UPRG) and Progressive Unionist Party (PUP) in the city have said that after discussions in the past few months they will co-operate on a protocol aimed at the management of flag flying in all the city's loyalist areas in the summer months.
David Malcolm, Londonderry spokesman for the UPRG, told the Sentinel that whilst it will be left up to individual communities to deal with the flags issue at their discression they will recommend that flags be erected at the end of June and will be removed in conjunction with Road Services by September 1.
"We recognise the right of the Protestant, loyalist and unionist community (PUL), to express their heritage and culture and as such, flags within communities will not be removed without the express permission of the community," he said.
The UPRG man said in recent years mainstream unionists have accused loyalists of placing flags and then allowing them to rot.
"We took responsibility for this since we were being blamed for it, although we had nothing to do with this," he said.
"In previous years we were totally excluded by the great and the good of mainstream unionism who have dealt with this issue. It is only since February this year we have dealt with statutory agencies to promote loyalism in a positive light."
The issue of flags has been a contentious one in Londonderry for many years and this new protocol is being regarded as a positive step.
Brian Dougherty, of St Columb's Reconciliation, the centre that produced a report into flags in loyalist areas earlier this year, took part in discussions with the loyalist representatives. One recommendation of that report was the future establishment of a 'Flags Forum' as in other parts of Northern Ireland.This is now being backed by both the PUP and UPRG.
Brian Dougherty told the Sentinel: "At St Columb's Park we are not dictating to any community what their attitude towards flags should be. The PUP and UPRG have taken this up on their own initiative but this is a positive step and we are happy to facilitate anybody who wants to get a policy on this."
David Malcolm said it was the aim of loyalists to destroy the perception that they cause trouble.
" We see a flags forum as the next logical step. It is all about shared space. The PUL community don't see great offence in flying flags in any area. The Union flag and the Northern Ireland flag are the flags of the state and shouldn't offend anyone, but we recognise they do. Therefore we will try and reduce tension," he said.