Holders Rushen United and Peel will contest the Railway Cup final for the second consecutive year.
The southerners required penalties to overcome St Mary's in their semi-final at Croit Lowey, the sides having drawn 1-1 after extra time.
Peel booked their place with a 2-1 away win at Glen Road, Terry Rigaux and Johnny Myers scoring for the westerners with Ashley Webster replying.
The final will be played at the Bowl in Douglas on Boxing Day.
Last year, Steve Riding's 61st minute strike was enough to settle the final, securing the Spaniards their first silverware in seven years.
Meanwhile, in the Isle of Man Premier League, Michael United drew 2-2 with Ramsey, St John's lost 1-0 to St George's and Corinthians beat DHSOB 2-1.
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