Nottingham Forest have failed in their bid to have a four-point deduction overturned for breaching the Premier League’s Profitability and Sustainability Rules (PSR).

Forest were handed the deduction in March after it was found they had overspent by £34.5million over a three-year period.

The club were set to be given a six-point deduction, but their early plea and co-operation meant it was reduced to four points.

Forest appealed the verdict, however, and their case was heard by an independent commission last month.

The Premier League has confirmed their appeal has been unsuccessful and the four-point deduction will be upheld.

A statement read: “An independent Appeal Board has upheld the decision of a Commission to deduct four points from Nottingham Forest following an admitted breach of the Premier League’s Profitability and Sustainability Rules (PSR).

“The PSR sanction applied to the assessment period ending Season 2022/23 and was appealed by the club on two grounds. The club argued that the independent Commission committed an error in not treating its sale of a high-profile player shortly after the assessment period as a mitigating factor, and that it committed a further error in electing not to suspend some or all of the points deduction it imposed.

“Each of these grounds was rejected by the Appeal Board, which found the independent Commission was entitled to immediately impose the sanction it did. The four-point deduction will therefore remain in place.”

The news is a big boost for Burnley and Luton, who are both fighting with Forest to avoid relegation.

Forest remain the favourites to beat the drop as they are 17th in the Premier League with just two games to go.

Luton trail them by three points, while Burnley - who host Forest on the final day of the season - are a further two back.

Forest and their relegation rivals will be glad to have had clarity on the situation before going into the final games.

Nuno Espirito Santo had previously criticised the situation and warned that sides not knowing what the outcome of any appeal would be was damaging the League.

“It can affect the integrity of the competition, no doubt about it,” he said last month.

“In terms of our approach, it will not change. Since we arrived there has always been the same objective, to win the games and realise that we have tough opponents and how we can do things.

“It’s a mess because it’s appeal after appeal after appeal and we don’t know what exactly is going to happen.

“We have expectations, Everton have expectations and the other clubs don’t know what is going to happen or for the next season. All these things must be solved as soon as possible.”