In 1911 another club was created, A.S. Oostende, which would soon become the best club of the city, playing regularly in the second division in the 1930s. In the mid 1970s, the AS reached the first division while the VG was playing at the second level.
The two clubs merged in 1981 to become K.V. Oostende. Twelve years after, the new club reached the first division. It has then been playing in the second division since 1995 except in 1998–99 and 2004–05 when it played at the higher level again.
VG Oostende was re-founded at the lowest level of the Belgian football one year after the merger. The club originally used the name Oostendse VG until the name VG Oostende could be used again ten years after the merger. VG Oostende originally used the Armenonville stadium again, which was the original VG Oostende's ground. Since the ground has been declared unsafe, VG Oostende groundshares with KV Oostende in the Albertparkstadion.
In August 2007, Oostende established a working partnership with Scottish giants Celtic. Under the deal, each season Celtic will send up to three reserve and youth team players on loan to Oostende. These working partnerships are not unique to Belgian football, as Royal Antwerp have been in partnership with Manchester United since 1998.
On August 23, 2013, shortly after the start of a new season in the Jupiler Pro League, it was announced that chairman and majority shareholder Yves Lejaeghere would be succeeded by a new chairman businessman Marc Coucke with Lejaeghere remaining as president-manager.