Former lead singer of the band, Feargal Sharkey, who is now known as much for his environmental campaigning described it as an “absolute honour”.
The artwork, created by Karl Porter of UV Arts, involved weeks of work but had been mooted as an idea for a number of years.
It is timely with this year marking the 45th anniversary of they band’s legendary single, Teenage Kicks.
Karl and other artists have been responsible for transforming Derry’s streetscape over recent years.
Alongside old Troubles-related murals, images celebrating the city’s heritage and cultural icons now take pride of place.
Like the band, this particular piece is punk in style — a departure from UV Arts’ other work with three layers of colour and Karl drawing inspiration from world-renowned political street artist, Banksy.
Commenting online, former frontman Mr Sharkey said: “WOW! How fantastic is that, what an absolute honour.
“My applause and appreciation to everyone involved, never thought for one second I would ever see myself staring down from Derry walls. Totally brilliant bit of work.”
The image itself is one that graces the cover of The Undertones’ self-titled debut album.
It shows the young men atop a wall in Bull Park which is close to the areas where they all grew up.
Speaking to the Belfast Telegraph for a recent interview, guitarist Mickey Bradley shared a story about one homecoming gig at the park.
Having just appeared on Top of the Pops, they returned to perform a gig in the back of a lorry at Bull Park where young boys “pelted us with eggs” and the show had to be abandoned.
McCartney and Casey solicitors provided the gable wall canvas and supported Karl for The Undertones piece, along with other local businesses.