UEFA has delayed its decision on Crystal Palace's participation in European competition following complications arising from multi-club ownership regulations.
The governing body announced it would postpone its assessment of the case involving the Eagles and French side Lyon.
Crystal Palace secured their first major trophy last month, earning qualification for their inaugural European campaign.
However, this historic achievement faces uncertainty due to Eagle Football Holdings' ownership stakes in both clubs.
UEFA has delayed its decision on Crystal Palace's participation in European competition, citing complications arising from multi-club ownership regulations
PA
The American investment group holds a 43 per cent share in Crystal Palace whilst also owning Lyon.
This dual ownership has triggered UEFA's multi-club ownership rules, which prohibit two clubs under the same ownership from competing in European tournaments.
The postponement relates to Lyon's precarious financial position and their provisional relegation to Ligue 2 for breaching financial regulations.
The French club has lodged an appeal with the Direction Nationale du Controle de Gestion (DNCG), the authority overseeing French football finances.
UEFA's statement confirmed the delay was connected to Lyon's compliance with a settlement agreement for breaching financial sustainability requirements.
The agreement stipulates that Lyon would face exclusion from the 2025/26 UEFA competitions should the DNCG uphold their relegation to France's second tier.
The governing body stated: "Further details on this multi-club ownership case and this settlement agreement will be communicated in due course."
John Textor has stepped down from his role as Lyon president, relinquishing control of the French club's daily operations.
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Lyon will be playing in Ligue 2 next season after being relegated for financial issuesPAThe American businessman confirmed his resignation on Monday whilst suggesting future involvement with another English club.
"I am truly looking forward to the reduction of my day-to-day management responsibilities in Europe, so I can focus on markets where we have the full freedom to run our football clubs to invest, innovate, grow and compete," Textor stated.
He added: "OL (Lyon) in great hands with Michele [Kang], and I will focus on Botafogo, Daring Brussels and our next club in England."
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Textor praised Michele Kang as the "perfect choice" to lead Lyon going forward.
Crystal Palace remain in limbo regarding their maiden European campaign, with the club having been optimistic about receiving clarity on Monday.
Under UEFA regulations, Lyon would typically take the Europa League spot as they finished sixth in Ligue 1, compared to Palace's 12th-place Premier League finish.
Crystal Palace qualified for the Europa League by winning the FA CupPAThe multi-club ownership rules dictate that the club achieving a higher domestic league position takes precedence in such situations.
Palace have maintained confidence in reaching a resolution, noting that no facilities, players or resources are shared between the two clubs.
The ownership structure at Palace sees Textor's Eagle Football Holdings holding 43 per cent of shares but only a quarter of voting rights, alongside chairman Steve Parish and US investors Josh Harris and David Blitzer.
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