Crystal Palace's hopes of competing in next season's Europa League have suffered a significant setback after Lyon successfully overturned their relegation to Ligue 2 at an appeal hearing in Paris on Wednesday.
The French club's reinstatement to Ligue 1 means they will retain their Europa League place after finishing sixth last season, creating a direct conflict with Palace's qualification through their FA Cup victory.
The seven-time French champions had been demoted by the country's football watchdog, the DNCG, over financial issues last month.
However, Lyon have now earned a reprieve following their appeal, with the club confirming in a statement that they "welcome today's decision by the DNCG to keep the Club in Ligue 1."
Crystal Palace still face being booted out of the Europa League with a decision postponedPA/GettyThe complication arises from UEFA's multi-club ownership rules, which bar clubs from competing in the same UEFA competition if an individual or ownership group has decisive influence over more than one team.
John Textor, through his Eagle Football Holdings, owns Lyon and remains Crystal Palace's largest shareholder with a 43 per cent stake.
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Although Textor recently agreed to sell his Palace shares to New York Jets owner Woody Johnson for approximately £190 million, the deal has yet to be officially confirmed.
The former US ambassador to the UK must still pass the Premier League's owners' and directors' test, though this process is understood to be nearing completion.
Palace now face the prospect of being demoted to the Conference League, with Nottingham Forest potentially taking their place in the Europa League.
UEFA have indicated that its Club Financial Control Body (CFCB), which investigates alleged breaches of multi-club ownership rules, is due to decide on Palace's fate this week.
The London club, who have never played in a major European competition, had hoped to join Aston Villa as the Premier League's representatives in the tournament won by Tottenham last season.
However, their prospects now appear slim following Lyon's successful appeal.
UEFA had previously stated that Lyon would not be allowed to play in Europe should they have been relegated.
Palace are expected to appeal to the Court of Arbitration for Sport if they are barred from the Europa League.
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Lyon have overturned their relegation to Ligue 2 and are now set to play in the Europa League
PALast month, UEFA rejected attempts from Textor and his Palace co-owner David Blitzer, who is the majority shareholder at Danish side Brondby, to put their shares in a blind trust after they missed the 1 March deadline.
Textor announced last week that he had resigned from his leadership roles at Lyon.
Michele Kang, who owns Washington Spirit and London City Lionesses, has been appointed as chair and president, with Michael Gerlinger as chief executive.
Kang is understood to have led Lyon's successful appeal, with reports in France indicating the club agreed an "austerity plan" designed to stabilise its finances.
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