Leicester have won their appeal against a decision that an independent commission had jurisdiction to consider an alleged breach of the Premier League's profit and sustainability rules.

The English top flight said late Tuesday it was "surprised and disappointed" by the move to uphold the Foxes' appeal, which means they are set to avoid a points deduction.

An independent appeal board found that Leicester's accounting period -- after it was claimed the club had exceeded the maximum permitted £105 milion ($138 million) loss over a three-season period -- ended on June 30, 2023, after the club were relegated from the top flight.

The Premier League said that the appeal board's decision "effectively means that, despite the club being a member of the (Premier) League from seasons 2019/20 to 2022/23, the league cannot take action against the club for exceeding the relevant PSR threshold in respect of the associated accounting periods".

Leicester welcomed the decision, adding the verdict supported their "consistently stated position that any action against the club should be pursued in accordance with the applicable rules".

The club, shock Premier League champions in 2016, could have faced a points deduction had they been found to have breached the financial rules.

After a campaign in the Championship, Leicester returned to the Premier League this season. They have drawn one and lost two of their opening three fixtures.

Both Nottingham Forest and Everton were given points deductions last season for breaching PSR rules.

Premier League champions Manchester City were charged early last year over 115 alleged breaches of regulations and financial rules. City strongly deny the charges.