Premier League clubs have avoided sanctions over breaching financial rules but Leicester City remain locked in battle over a previous legal dispute.

Last season’s Championship winners have confirmed they will not be facing sanctions for breaking profitability and sustainability rules (PSR) from the 2023-24 season, while the 19 other top-flight clubs are also compliant.

However, Leicester’s long-running feud with the Premier League is set to be extended after the governing body appealed against the club’s victory in a legal row last September.

Leicester were charged with a breach for the 2022-23 season but the club successfully argued that it could not be applied as they had already been relegated to the Championship when the accounts were completed in June 2023.

With the assistance of sports lawyer Nick De Marco, Leicester’s claim that the Premier League did not have jurisdiction was backed by an independent commission. The Premier League has appealed against the decision, which must now be settled before any further action is taken. Insiders have claimed that the chances of the Premier League successfully winning its appeal are slim.

Tuesday’s development will come as a major boost for Leicester, who had always been privately confident no charges would be applied for the 23-24 season.

Despite reporting losses of £92.5 million and £89.7 million in the previous two years, Leicester raised over £90 million following relegation to the Championship.

Harvey Barnes (£38 million to Newcastle), Kiernan Dewsbury-Hall (£30 million to Chelsea) and Timothy Castagne (£13.5 million to Fulham) were major sales, while Chelsea paid £10 million in compensation to appoint manager Enzo Maresca and his coaching staff.

Leicester have suffered five league defeats in a row under manager Ruud van Nistelrooy and a potential points deduction could have had severe repercussions for the club’s survival chances.

A joint statement by Leicester and the Premier League read: “Issues as to the jurisdiction of the Premier League over Leicester City Football Club in relation to PSR compliance are currently the subject of confidential arbitration proceedings.

“Accordingly, neither the League nor the club will make any further comment at this stage about any aspect of the club’s compliance or otherwise with any of the PSR or related Rules, save to say that no complaint has been brought against Leicester by the League for any breach of the PSRs for the period ending Season 2023-24.”