Sean Armstrong (right) was on target for Donegal Celtic

The home team dominated the first half and Celtic goalkeeper Alex Spackman made great saves to deny David Ward, Cormac McArdle and Lee Feeney.

However, Ward did put Newry ahead on 50 minutes and Paul Donegan hit City's second goal 17 minutes later.

Sean Armstrong pulled a goal back for Celtic 11 minutes from time.

Spackman, signed from Larne in the close-season, kept Celtic in the game in the first half.

He saved Ward efforts in the fourth, 17th and 20th minutes and after also denying McArdle's effort on the half-hour, the former Larne keeper brilliantly stopped Feeney's header before the break.

Celtic could have grabbed an undeserved lead on the stroke of half-time when Robert Robinson failed to hold a Paul McVeigh cross but Armstrong blasted over.

Newry continued to dominate after the break and it was little surprise when they took the lead on 50 minutes.

Paul Donegan's long ball played Ward into space and, after holding off Gerard McCabe, the striker calmly slotted the ball under Spackman.

DC had a chance to level on the hour when McVeigh whipped a dangerous ball across the box but Mal Harbinson was unable to get the crucial touch.

Provider Donegan turned scorer 17 minutes later when, totally unmarked, he was able to head Ward's cross past Spackman.

Armstrong gave Donegal Celtic hope when he blasted the ball to the net after an Anthony Lagan cross but Newry had little difficulty holding on for the points.