Ards FC, who were defeated 3-2 by the east Belfast team in the first round on 8 January, lodged a letter of protest with the committee regarding the eligibility of Dundela player David Fearon for the game.
The IFA confirmed in statement that Ards would now play Newry City in round after after the Challenge Cup Committee upheld the protest.
"After considering documentation received from both NIFL Championship clubs, the committee decided that the protest should be upheld and agreed that Ards be reinstated to the competition to play Newry City in round two on Saturday 5 February in accordance with Rule 2 of the Challenge Cup Rules," the statement said.
