Fourteen teams participated in the 1996–97 Cypriot Second Division.
All teams played against each other twice, once at their home and once away.
The team with the most points at the end of the season crowned champions.
The first three teams were promoted to 1997–98 Cypriot First Division and the last three teams were relegated to the 1997–98 Cypriot Third Division.
Teams promoted to 1996–97 Cypriot First Division Teams relegated from 1995–96 Cypriot First Division Teams promoted from 1995–96 Cypriot Third Division Teams relegated to 1996–97 Cypriot Third Division