The revised business plan was prepared by independent consultants who were appointed by the council in 2014.
The plan foresees an expansion of student numbers to 9,400 by 2025.
This date is five years later than was hoped when the One Plan for Derry's regeneration was launched.
The plan also includes increasing full time undergraduate places by 2,636 bringing the total to 6000 by 2024.
John Kelpie, chief executive of Derry City and Strabane District Council, said that there were a number of options detailed in the revised plan.
"It recommends what we believe to be the most effective and financially viable option to improve access into higher education and maximise impact on the city.
"It aims to fully inform decision-making by the Department for Employment and Learning and the NI Executive in relation to both sustainable funding and the current maximum student number cap."
Ulster University Vice-Chancellor and President Paddy Nixon said it was essential to sustain the positive impact within communities.
"We recognise our responsibility as a civic university.  Ulster University has always remained committed to expansion at the Magee campus.
"Long-term sustainable funding provision for students and infrastructure investment is also essential to deliver these ambitions."
A new plan to expand student numbers at the Magee campus in Londonderry to more than 9,000 has been submitted by Derry City and Strabane District Council and Ulster University.