The Magpies will get another chance to play Castlewellan for the league final after they have won the appeal.
It is believed that the hearing took place last night with GAA officials, members of the Down County Board and reps from both Kilcoo and Castlewellan.
The first meeting between Kilcoo and Castlewellan in the league will be a league match for the 2017 and a replay for the 2016 league final, the match is expected to take place in Pairc Esler.
The controversy took place when Kilcoo withdrew themselves from the league final in November 2016.
The original game was scheduled a few days after their win against Donegal Club Championship winners Glenswilly in the Ulster Club Championship.