HAL Sports Club will take the place of Tata Football Academy in the 11th NFL, starting January, the All India Football Federation announced on Tuesday.
TFA, based in Jamshedpur, pulled out of the top division of the National Football League despite qualifying for it, as they were not willing to change the character of the team and professionalise their set-up to be part of the NFL.
TFA wanted to remain an academy, which went contrary to the requirements put forth by the All India Football Federation for being part of the 10-team NFL Division I.
AIFF president Priya Ranjan Dasmunsi took the decision after consulting the federation's Executive Committee.
Hindustan Aeronautics Club, based in Bangalore, finished third in the NFL's second division last year, while only the top two were eligible for promotion to the top tier.
There was also an option to retain Salgaocar Sports Club, Goa, which was relegated from the top division last season, but the federation decided in HAL's favour.
Churchill Brothers, Goa, are the other side which will take the field in Tier-I next season.
The fact that South India had no NFL representatives, is understood to have swayed most members to vote in HAL's favour.
The AIFF has also finalised the dates for the 28th Federation Cup, to be held in Kolkata this year.
The premier club tournament in the country will be held from December 18 to 30, and the draw will take place in New Delhi on Friday.