Derry have progressed in Europe for the first time since 1965 after Thursday night's Uefa Cup qualifying round second leg win at the Brandywell.
The Eircom League side, leading 1-0 from the first leg, increased their advantage when Stephen O'Flynn slotted home a penalty on 32 minutes.
Referee Gardar Hinriksson awarded Gothenburg a penalty but reversed his decision after consulting a linesman.
Derry withstood late pressure to secure a memorable victory.
The Candystripes made a bright start with Bengt Andersson saving from a Kevin McHugh shot.
An O'Flynn throughball put Ruairdhi Higgins clear on goal but he failed to control and the chance was gone.
The Swedish visitors assumed control but they were punished for failing to convert their pressure into a goal.
George Mourad handled a Kevin Deery corner and O'Flynn fired just inside a post to put Derry ahead.
Higgins almost doubled the lead just after the break when he headed over from a McHugh cross.
The Icelandic referee seemed to offer Gothenburg a way back when he pointed to the spot on 75 minutes after Marcus Berg went down under a challnge from keeper David Forde.
But the linesman had already flagged for a goal-kick and after a consultation Hinriksson changed his mind and booked Berg for diving.
Derry City: Forde, McCallion, Hargan, Hutton, Higgins, Beckett, Deery, Barry Molloy, O'Flynn, Kelly, McHugh.
IFK Goteborg: Andersson, Bjarsmyr, Adam Johansson, Kihlberg, Selakovic, Alexandersson, Hjalmar Jonsson, Mourad, Wernbloom, Dennis Jonsson, Vasques.
Referee: Gardar Hinriksson (Iceland)