In 2010 the club was liquidated and reformed under the name Merthyr Town, which was accepted into Division One of the Western League.

However, despite their success, the club failed to be elected to the English Football League.

After bouncing between the various Southern League divisions during the 1960s, 1970s and 1980s, the club finally won their sixth championship in 1988–89, making them joint Southern League title record-holders together with Southampton.

However, they then went into decline, and were relegated back to the Southern League in 1995, where they remained until reforming in 2010.

The club managed a win in the first leg at home, beating the Italians 2–1.