Vale of Leithen1
Second-placed Gretna got off to a flyer when Vale were penalised for a rash challenge on Ian Anderson, who sent Vale keeper Mark Wilson the wrong way from the spot.
The home side notched a second when Scott Milligan fired the ball into the net.
Vale were finding it difficult to get into the game and their best chance fell to Kris Mitchell, whose effort cleared the bar. Wilson was kept busy in the Vale goalmouth, pulling off two tremendous saves before the break.
Vale pulled a goal back after a clearance from keeper Graham Wright was blocked by Kris Mitchell, who hit the back of the unguarded Gretna net from 35 yards out.
That was the last bit of New Year cheer for Vale as the home side restored their two-goal cushion through Darren Addison and Alan Inglis.
This weekend, Vale entertain Spartans, Gala Fairydean Rovers travel to BSC Glasgow and Selkirk are away to Whitehill Welfare.