Dundalk have been in the top flight of Irish soccer since 1926 but their defeat by Waterford United at the RSC last night all but dooms them to the First Division next season.

An Alan Kirby goal broke the deadlock after 35 minutes. Goalkeeper Michael Devine began the move with a long kick out to Robert Griffin who squared the ball nicely to Derek McGrath. McGrath controlled perfectly and placed the ball at Kirby's feet and his blistering drive on the run from just inside the area flew into the net passed goalkeeper Steve Williams.

Waterford almost opened their account on 18 minutes when Karl Gannon's header from a Griffin corner from the right came back off the goalpost. The ball fell to Dave Smith but his shot from 12 yards was well saved by Williams.

Dundalk's best effort of the first half came in the 24th minute when a 20-yard low drive from David Hoey tested Devine.

After only nine minutes Noel Melvin had a weak shot at goal from a Shane Reddish pass but Devine gathered safely.

Waterford's second came after 61 minutes when the Dundalk defence was split wide open. Derek McGrath put Gannon clear and he raced towards goal drawing out Williams. Gannon could have taken the chance himself but he opted for safety and released the ball to the unmarked Dominic Iorfa who had the easiest of tasks to slot home into an empty net.

Seven minutes earlier a brave safe by Williams denied Kirby a second goal after good approach work by Iorfa and Gannon.

Waterford United: Devine, Smith, Frost, Derek McGrath, Riordan, Tim McGrath, Kirby, Harkin, Gannon, Iorfa, Griffin. Sub: Wood for Iorfa (78 mins).

Dundalk: Williams, Reddish, Brady, McNulty, Thew, Melvin, Campbell, Martin, Hoey, Ward, Harte. Subs: Fortune for Thew (halftime), McGinnity for Harte (62 mins), Brennan for Reddish (70 mins).

Referee: J McDermott (Dublin).