Leicester will not be deducted Championship points if found to have breached Premier League financial rules before the end of the season, the EFL has announced.

The Foxes were charged with breaching the top flight’s profitability and sustainability rules (PSR) last month in relation to the assessment period ending with the 2022-23 season, when they were still a Premier League club.

The club issued “urgent legal proceedings” on March 22 against that charge, and against an EFL transfer embargo.

The EFL revealed on Friday that as part of those proceedings, Leicester had sought an interim injunction preventing any sporting sanction – such as a points penalty – being imposed in the current season, with the Foxes battling Leeds and Ipswich for automatic promotion to the Premier League.

However, the EFL has now said that after taking legal advice it does not have the power under its rules as currently drafted to impose any points penalty ordered by an independent commission set up to hear a Premier League charge, and has confirmed that to all parties concerned.

It said Leicester’s application for an injunction was therefore no longer necessary.

There had been no realistic expectation that any points penalty arising from the Premier League charge would end up being applied to this season’s total, given the timescales involved.