Tottenham leading race to sign Aston Villa's £40m-rated star Jack Grealish

Aalan Hutton of Aston Villa and Isaac Success of Watford during the pre season friendly match between Aston Villa and Watford at Villa Park

Xia rethinks funding after Aston Villa's play-off loss misses out on £160m payday

"Aston Villa Football Club can confirm that an agreement has been reached with HMRC and the club will continue to fulfil its obligations." read the statement.

The Championship side have also confirmed there are no insolvency practitioners or administration advisors working with the club.

Villa lost to Fulham in the play-off final last month and Xia suggested last week that changes were coming in response to that failure.

Captain John Terry will not renew his contract after they missed out on promotion while midfielder Jack Grealish could be sold to raise cash.

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Huge investment in player wages and more than £70m in transfers in two seasons has left the club facing an HMRC winding-up order.

The outstanding amount is likely to be paid swiftly after the club missed a tax payment on Friday, heightening growing fears of financial issues with Villa needing to find around £40million to comply with Financial Fair Play.

Sky are reporting that HMRC are content with an arrangement whereby Aston Villa will pay £1.2m by the end of this week, roughly half of the money it owes in unpaid tax, after an immediate payment of £500,000 was made earlier today. Whilst this may at least be a move in the right direction it would be extremely optimistic to see this as anything other than a short-term measure.

Chief executive Keith Wyness was suspended this week after a row with Xia over the club's financial black hole. Any potential new owner would need in excess of £100m simply to cover the contractual commitments in place at Villa Park.

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