Leicester are set to be charged by the Premier League over alleged breaches of its financial regulations, the PA news agency understands.

The club could be charged as early as next week.

Clubs are not permitted to exceed losses of £105million over the assessment period ending 2022-23 under the league’s profitability and sustainability rules (PSR).

Leicester are on course to bounce straight back to the Premier League

The Foxes, who are currently top of the Championship, are set to publish audited accounts covering last season at some point this month and were required to also submit these to the Premier League.

Leicester’s relegation last May meant they had lost their Premier League share prior to the league’s annual general meeting last June. They were therefore not subject to the new standard directions for PSR agreed at that meeting. It was under those standard directions that PSR complaints were laid against Everton and Nottingham Forest in January.

The aim of the standard directions is for all complaint processes to be finished, inclusive of appeal outcomes, before June 1, when promoted teams gain their Premier League shares.

However, even under the old rules, the Premier League could push for an expedited hearing to have Leicester’s case concluded before the end of this season should they be charged, as they did in March last year after Everton were charged with a PSR breach concerning the period ending 2021-22.

The independent commission in that case rejected the Premier League’s request, deciding it would be “unrealistic” to expect the proceedings and any appeal to be determined in the current season.

It further stated that to compel Everton to attempt to meet such a timetable would run the risk of procedural unfairness. The case was ultimately heard last October, with the initial 10-point sanction handed down the following month.

If the commission reached a similar decision regarding Leicester, it would mean the club could seal promotion back to the Premier League and only be sanctioned once in the top flight.

Any club relegated from the Premier League from this season onwards will be subject to the standard directions signed off last June.

Leicester recorded losses of £92.5million for the year ending May 31, 2022.

The EFL’s independent club financial reporting unit (CFRU) concluded in November that Leicester were forecasting to breach EFL Profitability and Sustainability (P&S) loss limits for the three-year period ending with financial year 2023-24.

The CFRU determined the club should submit a business plan to demonstrate how it planned to comply with P&S rules, but an independent panel found Leicester was under no obligation to submit and agree to a business plan.

The club issued a statement on Wednesday welcoming the panel finding, and added: “Leicester City confirms it is in discussions with the football authorities regarding its profitability and sustainability calculations.

“Notwithstanding the CFRP’s decision, the club remains committed to seeking an appropriate overall outcome in this matter.”