Last updated on .From the section Aston Villa

Aston Villa will start next season in the Championship following their relegation

Aston Villa's takeover by Chinese businessman Dr Tony Xia is not on the verge of collapse.

It has been reported external-link that Xia has failed to demonstrate he possesses the necessary funds to complete the deal.

But BBC Sport has learned £52m has been paid into an escrow account, ready to be transferred to current Villa owner Randy Lerner.

Xia has also provided proof of funds that will guarantee he takes on an existing debt of £25m.

The same amount will be payable to American Lerner if Villa, relegated from the Premier League, return to the top flight within three years.

Xia has also provided guarantees to the Premier League and Football League that he can cover the club's operating costs for the next two seasons.

A joint enquiry by the two leagues continues and will not be rushed as all aspects of the proposed takeover are scrutinised, including the likely make-up of the new board of directors.

Villa remain without a permanent manager to replace Frenchman Remi Garde, who was sacked in March.

Former Everton and Manchester United boss David Moyes, who was on a three-man shortlist for the job, pulled out of the running last week.

Ex-West Brom and Chelsea manager Roberto di Matteo remains in the frame.