[1][2] United secured the play-off on the final day of the season, drawing with 3rd-placed Morton and finishing 2nd on goal difference.
United scored freely at home in the league, particularly in the second half of the season, including 8–0 and 6–1 wins over Dumbarton and a 6–0 triumph against Clydebank.
Embarrassingly, the club lost on penalties to Stenhousemuir in the Scottish Challenge Cup final, although didn't concede during the entire tournament.
Manager Billy Kirkwood continued to rebuild the team over the close season, bringing in Motherwell defender Rab Shannon, Rangers keeper Ally Maxwell and Neil Caldwell, also from Ibrox.
The Rangers connection continued when the Ibrox club made a bid of £1.5 million for Gordan Petric, which United accepted and this money helped to re-shape the team well into the new season.
Also out the door went Juan Ferrari, walking out after not being promised a first team place, and the Brazilian Sergio left for Kuwait.
The season got under way with a draw with Morton at Tannadice with five new players in the starting line-up, then a short trip down the road saw Cowdenbeath beaten in the 2nd round of the League Cup.
The 3rd round of the League Cup saw Motherwell win 2–1 at Tannadice, giving United one less distraction during a difficult season.
Billy Kirkwood then signed yet another former Rangers player, Gary McSwegan, from Notts County, and he made his debut in the 1–0 defeat to Dumbarton at Boghead Park.
Owen Coyle arrived from Bolton Wanderers and scored on his debut in a 2–1 win over St Johnstone at Tannadice.
November saw ex-United midfielder Ray McKinnon return to Tannadice after spells with Nottingham Forest and Aberdeen, and he made his debut against Stenhousemuir in the League Challenge Cup final at McDiarmid Park.
Ex-United legend Eamonn Bannon turned out for the opposition that day and the game ended in a disappointing 0–0 draw, with United losing 5–4 on penalties.
After a 3–1 home defeat to St Johnstone in February, United started their Scottish Cup campaign with a midweek trip down to Berwick Rangers after the match had been postponed.
Just as United looked to be running away with the league, they lost another important three points with a 1–0 defeat to St Johnstone at McDiarmid Park.
Just as it looked like United's chance to get back to the Premier Division had gone, Brian Welsh popped up with a last-minute header which sparked unbelievable scenes at Tannadice and take the game into extra-time.
Ten players left the club permanently with two transfers – Billy McKinlay to Blackburn Rovers and Gordan Petric to Rangers – receiving seven-figure sums.