Oxford will be playing in the Football League next season after beating York 3-1 in the Blue Square Premier play-off final at Wembley.
Matt Green and James Constable handed the U`s a quickfire 2-0 lead with just 21 minutes on the clock but a howler from goalkeeper Ryan Clarke gave City a lifeline just before the break.
But it was not to be and Alfie Potter`s 91st-minute strike confirmed it was Oxford, and more than 30,000 United supporters, who were celebrating their first return to League football since 2006.
The 1986 League Cup winners went into the encounter as slight favourites having taken four points off York during the regular league season and finishing two places above their North Yorkshire opponents in third.
York boss Martin Foyle - a former Oxford player himself - was standing in their way but his side endured a forgettable opening quarter at the national stadium.
Green opened the scoring with a fantastic strike after 15 minutes, chesting the ball down before half-volleying a well-taken left-footed effort into the top corner from the edge of the area.
And it got better for Oxford just six minutes later as they doubled their lead courtesy of Constable`s low strike - his 26th goal of the season.
Jack Midson saw his header hit a post as Chris Wilder`s side looked to put York out of sight. But the Minstermen, who had enjoyed chances of their own, were thrown a lifeline just before the interval when keeper Clarke dropped Ben Purkiss` innocuous-looking cross over his own line.
Both sides had opportunities after the restart, with York predictably applying all the pressure in the closing stages.
Yet Oxford held firm and substitute Potter made sure of victory with a low finish in injury-time to ensure it is the Kassam Stadium that will be graced with Coca-Cola League Two football come August.
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