Derry City currently has an academy team as well as an under-21 reserve team who play in the Under-21 Football League of Ireland. These teams have also competed in international youth tournaments, including the Foyle Cup and the Umbro Galway Cup. In 2006 the academy team was victorious in the Umbro Galway Cup. Although many youth players come from the local youth league, the Derry and District League, Derry have branched out their scouting network and have since promoted players from all around Ireland.
Derry's under-21 side finished 3rd in the 2006 Dr. Tony O'Neill League Northern Section and therefore qualified for the knock-out stages, contested between qualifiers from the four provincial sections. In the second round, the side met Shelbourne F.C.'s under-21 team and knocked them out, winning 3-1. However, the side were then beaten in the quarter-final by the under-21 team of Sligo Rovers F.C.
The reserve and youth squads are coached by Peter Moran and George Harkin and include promising talent such as:
Note: Flags indicate national team as defined under FIFA eligibility rules. Players may hold more than one non-FIFA nationality.
At the start of the 2007 season, a supporter publication, Derry City FC: City Till I Die, designated the task of revealing their dream teams to life-long Derry City fans, Mick McBride and Davy Doherty. Both men decided to choose only players that they had witnessed first hand playing for Derry City, thus limiting the pool to only players to have appeared since the 1950s. Subsequently, the likes of goal-scoring legend, Jimmy Kelly, remained absent. Players were chosen from both Derry's Irish League and League of Ireland eras. While distinguishing players on the basis of ability and consistency, consideration was also given to the amount of time contributed toward the club by individual players. While recognised greats such as Alan Sunderland, Denis Tueart and Neil McNab all played with Derry City, they all played with the club during the twilight stages of their careers and did not manage to accumulate more than a handful of appearances each. Hence, players of such ilk were omitted.