Leicester City will be docked six points due to a penalty.

The club, which plays in the Championship, lost its appeal against the six-point deduction, the club and the Premier League announced on Wednesday, dealing a heavy blow to their battle to avoid relegation.

The Midlands club is currently in 22nd place in the Championship, just one point above the relegation zone, and is facing the risk of being relegated to League One — the third tier of English football — if they cannot regain their form in the final five matches of the season.

Leicester caused a sensation in the football world when they won the Premier League title in dramatic fashion a decade ago, but were relegated last season. They were deducted six points earlier this year for breaching the English Football League's (EFL) strict profit and sustainability regulations relating to spending.

"The Independent Commission's decision to deduct six points from Leicester City Football Club this season has been upheld by the Independent Appeal Panel", Premier League, the body that initiated the initial investigation, said in a statement.

Leicester have accepted the ruling.

"Now that the case has concluded and with only five games left in the season, everyone at the club is fully focused on the upcoming matches and on shaping the outcome of our season through on-field results," the club said.

Leicester will host Swansea City on Saturday.