Farsley were reported to owe �750,000 to creditors
The Football Association has confirmed Farsley Celtic will compete in the Koolsport North East Counties Premier Division next season.
Farsley folded in March and were removed from Blue Square North, with their results expunged from the league.
Club president John Palmer said: "We're a bit disappointed, as we had been led to believe that the club would be allowed to play in the Unibond League.
"We are considering whether to appeal the decision."
Farsley went out of business after the Palmer-Farrell consortium failed to agree a Company Voluntary Arrangement with their administrator in order to come out of administration. An ownership battle for Farsley's Throstle Nest ground is still continuing.
The reformed west Yorkshire club had hoped to be placed in the Unibond First Division North, just as neighbours FC Halifax Town had been when they were removed from the Blue Square Premier.
We hope that our supporters will stick with us, and over the next few seasons see the club rise back to where we believe it belongs
John Palmer
Palmer explained: "We are thinking about appealing, but on the other hand do not wish to be sidetracked any further. We have a new season to start planning for and plenty of work is still left to do.
"We would like to place on record our sincere thanks for the work that (club solicitor) James Moore has done on our behalf.
"He has worked extremely hard to try and get the deal with the administrator resolved, and thereafter to ensure a placing in the Unibond and we know he is just as disappointed as us," Palmer said.
"We would also like to thank all those supporters who took the time and trouble to back us by signing the Back The Palmer bid.
"To have so many support us was very humbling. We hope that our supporters will stick with us, and over the next few seasons see the club rise back to where we believe it belongs."
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