Derry City will play in the Champions League despite finishing second to Shelbourne in last season's Eircom Premier League title race.
Owen Heary of Shelbourne lifts the 2006 Eircom League title
Shels have decided not to apply for a Uefa licence following a board of management meeting on Thursday night.
The Dublin club have been demoted to the First Division because of serious financial problems, having huge debts.
Derry, who are now managed by former Shels boss Pat Fenlon, will compete in the Champions League qualifying rounds.
St Patrick's Athletic, whom Derry beat in the FAI Cup final, will now join Drogheda United in the Uefa Cup.