Hereford City will begin their membership of the Flint & Cook Marches League in Division 2 next season.
"We had to try to put Hereford in an appropriate division," said league secretary Derrick Jones. "We are aware that they have lost players but are still intending to field an overseas player and still have some strength.
"Division 1 seemed too high but Division 3 seemed too low so they were placed in Division 2 at the discretion of the committee."
The move has not met with the approval of Monmouth, however, whose second team were anticipating promotion from Division 3 which will not now happen.
To accommodate Hereford in Division 2, the league management committee have invoked league rule 4.15 which states: "The winners of each division shall be promoted. Runners-up will be promoted if, in higher divisions, no new teams are placed or a vacancy is created by clubs leaving the league. The management committee shall have the power to determine the division in which to place teams joining the league."
In this case, the team which will suffer is Monmouth 2nd, who finished in the runners-up spot in Division 3 last season.
Monmouth chairman Chris Brooks said: "I understand the league rule but I am disappointed there was no mention of this possibility at the annual meeting.
"I am also disappointed that the league officials have chosen to favour a new club over a long-standing member of the Marches League. In my opinion, Hereford City, as a new club, should have been placed in Division 3.
"This is a big blow to our club but it looks like we will have to accept this decision and look ahead to next season."
Hereford join the league from the Worcestershire County League in which they finished second from bottom in Division 2 last season.
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