Kildare’s loss to Louth sees Cavan stay in Division Two where there will be five Ulster teams in 2027.
Niall Loughlin levelled the scoring with a fabulous finish to the Cavan net after seven minutes, leaving the sides tied, 1-1 to 0-4.
Shane McGuigan scored a pair of two-pointers either side of an Ethan Doherty point as Derry moved into a seven point lead on 28 minutes.
Gearoid McKiernan responded for Cavan with two points. Oisin Brady followed it up on the stroke of half-time, leaving three points between the sides at half-time.
Derry leading at the break, 1-9 to 0-9. Oisin Brady opened the scoring for second-half for Cavan as they moved within two.
The Derry response was strong. Niall Loughlin, Ethan Doherty, Lachlan Murray and Shane McGuigan kicked Derry into a seven point lead after 55 minutes.
Cavan eventually offered a response when Oisin Brady kicked a score and Ryan Donoghue added a two pointer after 61 minutes leaving four between them.
Shane McGuigan and Ethan Doherty responded for Derry restoring their seven point lead.
Scores from Dara McVeety and Paddy Lynch left three in it . However, the ever present Shane McGuigan put the tie to bed with a free on the stroke of full time.
Derry running out four point winners, 1-20 to 0-19. However, Cavan retained their division two status as Louth got the better of Kildare.