Warrenpoint Town will play in an expanded Premier Intermediate League from next season.
The NI Football League announced on Friday that the PIL will be bumped up to 14 clubs in 2023/24.
It hands Warrenpoint a lifeline after the Milltown club lost its appeal against not being granted a Championship and Promotion licence.
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There were fears Barry Gray's side could be thrown out of the NI Football League completely, but now they will compete in the third tier.
Gerard Lawlor, NIFL Chief Executive said; “We have been having discussions with our clubs regarding the size of the structure of this league for some time, this has involved the number of games played and their involvement in various cup competitions.
"Following Warrenpoint Town’s licence refusal clearly preventing them from playing in the Premiership or the Championship, this provides us both the opportunity and need to increase the membership of the league.
“After positive consultation with the Irish FA and our PIL Clubs the fourteen-team league proposal, which was previously suggested by the Irish FA as their preferred model in the recent review of Intermediate football, has support from our existing PIL clubs.
“In situations like this we must work together to find solutions to issues and I’m both thankful and delighted a solution has been found to solve a number of our potential longer-term issues, far and beyond Warrenpoint Town”.
From season 2023/2024, the NIFL Premier Intermediate League will consist of 14 clubs, playing 26 matches each (traditional home and away fixtures, with no split) and straight relegation of the bottom club into the fourth tier.
Following consultation, clubs will continue to play in their regional cup competitions.
Membership of the new look PIL, will consist of the following: Warrenpoint Town, the defeated team in the Championship Promotion-Relegation playoff; the remaining 10 clubs from the 2022/2023 season; and two newly promoted intermediate clubs.
The two promoted clubs will be determined by the existing eligible applicants upon the conclusion of the current season across the regional intermediate leagues.
Warrenpoint finished second in the Championship last season and were set to play a Premiership promotion/relegation play-off with Dungannon Swifts.
That fixture was postponed after the Irish FA's Licensing Committee rejected the Milltown club's application for a Championship and Promotion licence, stating they were "not satisfied" Warrenpoint had "met all of the required standards for the reward of a Championship Club Licence".
Warrenpoint Town later revealed their application was rejected because of a tax bill which has now been paid.
The Milltown outfit had considered taking their case to arbitration.
Annagh United have taken their place in the Irish Premiership relegation/promotion play-off against Dungannon Swifts which takes place on May 30 and June 1.
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