Fourteen teams participated in the 1996–97 Cypriot First Division.
The team with the most points at the end of the season crowned champions.
The teams had to declare their interest to participate in the 1997 UEFA Intertoto Cup before the end of the championship.
AEL Limassol, Evagoras Paphos and Omonia Aradippou were relegated from previous season and played in the 1996–97 Cypriot Second Division.
They were replaced by the first three teams of the 1995–96 Cypriot Second Division, APOP Paphos.