The London club, who won last season's FA Cup, fell foul of UEFA's rules governing multi-club ownership.

European football's governing body determined that as of March 1, American businessman John Textor had control or influence in Palace and French club Lyon.

It means under UEFA rules they are unable to compete in the same European competition and Lyon held on to the Europa League spot by virtue of their higher league position.

Forest, who finished seventh in the Premier League, are expected to replace Palace in the second-tier Europa League should the punishment stand.

The Court of Arbitration for Sport issued a statement on Tuesday confirming it had received an appeal by Palace and would issue a decision by August 11 at the latest.

The CAS confirmed Palace were seeking to take either Forest's or Lyon's place in the Europa League.

Textor has agreed to sell his stake in Palace to New York Jets owner Woody Johnson, but the move came too late to satisfy UEFA.