LYON won their appeal against relegation to the French second division today, a decision which puts Crystal Palace’s participation in next season’s Europa League in major doubt.

Palace thought they had secured a place in Europe’s second-tier club competition thanks to their FA Cup final win over Manchester City in May but uncertainty quickly arose as to whether they would be allowed to enter due to Uefa’s multiclub ownership rules.

Outgoing Palace shareholder John Textor has an interest in French club Lyon, who qualified for the same competition.

Lyon had reached a settlement with Uefa agreeing to be excluded from European competitions next season if their relegation was confirmed on appeal, a move which would almost certainly have meant Palace could play in the Europa League.

However, Lyon’s success and higher league position means Palace are set to be moved down to the Conference League. Sources close to Uefa had previously indicated that Nottingham Forest would take the English spot in the Europa League vacated by Palace.

Lyon said in a statement: “Today’s decision is the first step in restoring confidence in Olympique Lyonnais and we now return our focus to creating success on the pitch, ready for next season.”

Uefa said on June 30 it was postponing a decision in the case pending the outcome of Lyon’s appeal hearing.

Uefa has been approached for comment regarding the outcome of the Lyon appeal.

Sources close to Uefa on June 30 indicated that no multiclub ownership issue had been identified with regard to Palace shareholder David Blitzer’s involvement with Danish side Brondby, who have also qualified for the Conference League, which means the London club should face no barrier in entering Uefa’s third-tier club competition.

Palace and Forest have also been contacted for comment, though it is expected the clubs will wait until Uefa issues a statement on the case.