Lyon's relegation to Ligue 2 has been overturned by the French football federation on Wednesday after an appeal by the club, jeopardising Crystal Palace's hopes of playing in the Europa League next season.
The DNCG, a French football authority, sanctioned Lyon on June 24 and relegated them due to financial issues. Lyon lodged an appeal and on Wednesday they presented to a committee with a new plan to convince them to overturn the original decision.
The main issue was a debt of €541 million ($634m) owed by the club and a massively inflated wage bill without much cash flow. To obtain their place back in Ligue 1, Lyon need a cash injection of €100m and to bring another €100m to serve as a guarantee for the next two years.
"Olympique Lyonnais welcomes today's decision by the DNCG to keep the club in Ligue 1," Lyon said in a statement. "[Lyon] thanks the appeals committee for recognizing the ambition of the club's new management, (which is) determined to ensure serious management in the future."
John Textor, Lyon's owner via his holding company the Eagle Football Group and the club's president, was forced to step down from the board and his role of president by his associates. Michele Kang, a shareholder in Eagle Football Group and successful businesswoman, is now in charge.
"The new management, supported by the commitment and dedication of our shareholders and lenders, is extremely grateful for all the support received both within and outside the club," Lyon added. "Today's decision is the first step in restoring confidence in Olympique Lyonnais. We can now focus our attention on our sporting objectives, fully preparing for next season."
Textor also owns a stake in Palace, via Eagle Football Group. He is in the process of a sale to New York Jets owner Woody Johnson for £190m ($254m) but that deal is yet to be confirmed
According to UEFA regulations, if a party has more than a 30% stake in the two different clubs, they cannot participate in the same European competition.
UEFA had previously said that Lyon would not be allowed to play in Europe should they have been relegated.
Palace must convince UEFA that they have sufficient diverged from Lyon to take part in the Europa League. A source told ESPN that a decision is expected within the next few days.
Information from Reuters, The Associated Press and ESPN's Dale Johnson contributed to this report.