Dundalk beat Linfield 7-1 over two legs to win the inaugural Unite the Champions Cup in November
Derry City have given their support to the All-Island League proposals set out by Kerry businessman Kieran Lucid.
Lucid's proposal would see all-island champions crowned through a knockout competition.
This would happen after a split season where the League of Ireland and Irish League would retain independence by crowning their own champions.
A Derry statement said the plan "is a seminal moment in the well being and even existence" of Irish football.
The statement added: "We are informed that the IFA and the FAI have agreed to jointly examine the report. We see this as creative and important.
"That examination will be more authoritative if those two organisations are aware of the extent of the support that exists within the island among the clubs for an expression of professional football that is vibrant and capable of achieving the same support and success of comparable leagues."
Lucid has driven the plan to merge the Irish Premiership and League of Ireland by consulting clubs, supporters and other stakeholders.
Data examining the proposals has been guided by Dutch experts Hybercube and a report has been passed onto clubs and the respective football associations.
The Irish Football Association had previously said it would not sanction the participation of any Irish League clubs.
'A unique relationship'
Derry City, who are based in Northern Ireland but play in the Republic of Ireland's top flight, acknowledged their "unique relationship" with football in Ireland having participated in both leagues in their history.
The club's statement added the report by the All-Island League Advocacy Group was "impressive" and took into consideration the financial benefits of the proposal.
"Particularly impressive is the model that accommodates the two leagues on the island to maintain their present structures and yet accommodating an all island structure.
"Equally impressive is the format that will accommodate smaller clubs to remain comfortably within financial demands while having the opportunity and support to become more ambitious for their players and supporters.
"Presently, we have two football leagues, both precarious in structure and financial viability."
League of Ireland teams competed against Irish League clubs in the knockout Setanta Sports Cup competition between 2005 and 2014
Derry's statement said the coronavirus pandemic has added to the financial pressures on clubs and it is difficult for "most clubs to keep their heads above the financial waters.
"The pandemic has exposed the underlying fragility of the present model. In pure business terms it is not viable. There is not enough income being generated to sustain the business.
"It always shocks fans when they discover that the prize money for winning the League in the north is £22,000 and in the southern league the prize money is €110,000.
"Pitted against the reality that it takes over £1,000,000 a year to maintain a medium successful club and the financial difficulties become apparent."
The Brandywell outfit encouraged the respective associations and clubs to carefully study to Lucid's proposal, adding that "professional football is a sport, but it is also a business".
The statement said the club understands the "natural tensions" between the two associations and clubs and "it is time to acknowledge the tenuous state of both Leagues and to recognise that neither the FAI or the IFA have had the local leagues at the top of their ambitions".
