The club was formed in the autumn of 1918 and played its first season in the Newry and District League, winning its first trophy in May 1919 by beating Damolly Rovers in the final of the Newell Cup.

The club used this money to develop a new ground – the Showgrounds – adjacent to the Marshes, which opened at the start of the 1948–49 season.

When the Irish League resumed in 1947, it was with twelve rather than fourteen members, Newry and Larne losing their places.

Newry, along with Dundela and Carrick Rangers failed to be accepted as B Division members and instead joined the Irish Alliance League.

On 13 March 2010, after an uncharacteristically unsuccessful spell McDonnell resigned as First team manager and Gerry Flynn once again took the reins.

Prior to this, Gerry Flynn was sacked as manager and former club captain Robbie Casey took charge on a temporary basis.

Despite speculation that Roddy Collins was to get the job, former Manchester United player Pat McGibbon later took over as first team coach.

The club finished as runners-up in the league behind Ballinamallard United and lost the two-legged promotion play-off 3–2 on aggregate to Lisburn Distillery.

[7] In early 2012, former manager Gerry Flynn took legal action against the club for wrongful dismissal and breach of contract regarding his sacking in 2011.

[8] However, on 10 August 2012, the club (Newry City FC Ltd) was the subject of a winding up petition brought by Flynn, after he had not received settlement.

This left the IFA with no option but to terminate the club's membership immediately, expunging all of its results from the season so far.