The Northern League has confirmed Penrith AFC first team have been spared relegation, and will continue to play in Division I next season.
Penrith finished second-from-bottom of the first division table at the end of 2021-22 campaign, and inside the provisional two-team drop zone.
But while Billingham Town, who finished bottom, will fall into Division II next season, the Blues have been handed a welcome reprieve.
This was confirmed by the Northern League on Thursday after the FA released the confirmed list of teams allocated to steps five and six of the National League System.
Penrith, who sacked manager Chris Humphrey at the end of the season just gone and are searching for a successor, will remain at step five and for the first time in several years will have a Cumbrian derby after neighbours Carlisle City clinched the Division II championship and promotion on a dramatic final day. Pickering Town will also join the 20-team Division I for 2022-23.