Radio 1 has played the song in its original form in recent years, but the insults contained in the lyrics, sung in the form of a blazing row between an alcoholic and a heroin addict, have always been criticised by some.
The Guardian columnist Owen Jones tweeted that as a gay man he was not "upset" about the use of the word "f *****" on the track, adding: "It's an epic song".
'Last time I checked, normal young people are still into sex, drugs and drill music and are not offended by un-PC language. "She is not supposed to be a nice person or even a wholesome person", he said.
The Pogues have not made an official statement on Radio 1's decision, but they did retweet Radio 1's statement without comment.
The broadcaster's unedited use of Fairytale of NY has caused controversy in recent years, with a performance of the track in last year's Gavin and Stacey Christmas special receiving 866 complaints.
When Ed Sheeran and Anne-Marie performed the song in Radio 1's Live Lounge in 2017, she used the line "cheap lousy blagger" instead.
The song includes the words "faggot" and "slut". But we have to remain true to the characters, to who they were.
"While the word 'f****t" is now widely acknowledged as having the potential to offend, the song never suggests or implies that this is, or was ever, an appropriate way to address another person, nor does it link it to homosexuality'. Fairytale of NY of course - it's not an Irish Christmas until there's been a Shane MacGowan singsong, am I right or am I right? We have a strict music policy that we expect to be followed'.
Radio 1 previously censored the song in 2007, however that decision was swiftly overturned after an outcry from fans.
The duet is one of the most enduring Christmas pop songs, having returned to the United Kingdom top 20 every year since 2005.
Radio 2 said: "We have considered this issue very carefully and have chose to play the original song".
Radio 2 will continue to play the original song for now, although it will monitor the views of its listeners.
Indeed, for many, that song is "Fairytale of New York" by The Pogues feat.
Meanwhile, Radio 6 Music will have both avatars in its library so that presenters and / or producers can choose between them with caution.
The new edited version alters two lines - one swapped for an alternative version in which MacColl sings "You're cheap and you're haggard" in place of a homophobic slur.