Cowdenbeath have been promoted to the Second Division after Livingston were relegated by the Scottish Football League.
The West Lothian Club club were adjudged to have breached league rules on insolvency.
Airdrie United have been promoted to the First Division for the new season, with Cowdenbeath taking their place in Division Two.
Livingston have the right to appeal against the SFL's decision but Blue Brazil manager Danny Lennon was buoyant.
"This news is a massive lift for everyone at the club, the players, the supporters and the community," he said.
Cowdenbeath narrowly missed out on a Second Division spot on merit after leading the third tier for a large part of last season.
A late surge by their rivals left them with only a play-off place and, after reaching the final, they were beaten in a penalty shoot-out by Stenhousemuir.
Danny Lennon added, "It was very disappointing to lose in the play-off final and we know it is going to be difficult task now next season, but it is certainly not beyond our players."
A consortium led by former Cowdenbeath chairman Gordon McDougall saved Livingston from liquidation by persuading major shareholder Angelo Massone to part with his stake for £50k.
They then presented a business plan aimed at sustaining the club, based on the side competing in the First Division, to the SFL.
But Livingston Football Club were found to be in breach of Rule 76.2, relating to insolvency and were relegated.
McDougall said he will now consult his partners, Dumbarton owner Neil Rankine and Livingston fans' representative Ged Nixon, over their next course of action.
"We've got to consider all the options that are open to us. It makes it very, very difficult," said McDougall.
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