Aston Villa are set to receive “significant investment” from businessmen Nassef Sawiris and Wes Edens.

Owner Tony Xia has been holding talks to relinquish some of his control of the club to the pair’s company, NSWE.

Talks have now ended with a successful outcome and Xia will become co-chairman under a co-ownership arrangement.

The Chinese businessman has spent the summer searching for fresh investment to plug a reported £40million deficit after Villa failed to win promotion back to the Premier League last season.

A statement issued by the club said: “Dr Tony Xia and Aston Villa Football Club announce that NSWE, a company that is jointly owned and controlled by businessman Nassef Sawiris’ group NNS and businessman Wes Edens, will immediately inject significant investment capital into the club.

“At the same time, Dr Tony Xia will become co-chairman and remain on the board.”

The deal has been ratified by the English Football League and comes after Villa, who were relegated from the top flight in 2016, lost to Fulham in the Championship play-off final in May.

This forthcoming season will be the last of Villa’s parachute payments following relegation from the Premier League but Xia said the club remain “focused on strengthening the squad” and mounting another promotion challenge.

“I am extremely pleased to have formed a strategic partnership with Nassef and Wes. We have a common goal of delivering future success for Aston Villa and I look forward to working together to achieve this aim,” he said.

“To have come so close to achieving promotion last season was a humbling experience. In finding such strong partners as Nassef and Wes we’re gearing up to fight again and bring back the success that this Club deserves and we all so want to provide it with.

“The future is exciting on a number of fronts and I look forward to exploring further business collaborations.”