Birmingham City are set for another legal battle with the English Football League over alleged breaches of financial rules.

The EFL has appealed after Birmingham were found not guilty of a second charge in successive seasons last month, with a bitter fight looming despite the coronavirus crisis.

Birmingham’s charge of misconduct was dismissed by an independent disciplinary commission, after a lengthy process, but the EFL are preparing to contest it.

Though Birmingham have declined to comment, it is understood the club hierarchy are "furious" with the new development and considering their next move.

The second charge was over an alleged failure to adhere to a business plan imposed by the EFL - which Birmingham denied - and a panel found in the Championship club’s favour.

After the verdict was announced, the EFL said in a statement: "The decision remains subject to appeal and the League will consider the judgment in full before making any further comment."

It has now emerged that the EFL has appealed, with Birmingham now facing possible punishment for the second season in a row.

The potential sanctions could range from a deduction of up to three points or a fine, with the decision to be made by another independent panel. A date for the hearing is yet to be arranged.