City were defeated on Saturday night by Dundalk in an intense cup final at the Brandywell as penalties were needed to separate the sides.
Parkhouse had given Derry the lead in the opening minutes before a curling effort from Michael Duffy levelled things at the break.
In the second half, Junior’s effort took a large deflection putting City back in front before Gillespie received a second yellow card leaving the hosts with just 10 men.
Gannon levelled things for Dundalk soon after by pouncing on a loose ball which was how it stayed after 90 minutes.
Extra-time failed to see a winner so penalties were required. Malone and Gilchrist missed for Derry and only Benson missed for Dundalk as they won 6-5 in the shootout.
Photos | Event Images & Video / Kevin Moore