Aston Villa have reached an agreement with Her Majesty’s Revenue and Customs over a £4m tax bill.

The agreement will allow the club, who missed out on a Premier League return after losing to Fulham in the play-off final at Wembley, to continue day-to-day operations.

Villa have also announced that there are “no insolvency practitioners or administration advisers working with the club”.

A statement added: “Owner and chairman Dr Tony Xia would like to take this opportunity to sincerely thank supporters during this difficult and unsettling time and reassure them plans are now being put in place to move the club forward.”

Earlier, Xia wrote on his Twitter account that it had been a “very difficult” two weeks.

Jack Grealish is Villa’s best option of raising a quick lump sum of money. The club hope to hold firm on their £30m valuation of the England Under‑21 international. James Chester has also been linked with a move.

Villa missed a tax payment but have now paid £500,000 and are expected to pay a further £1.2m by the end of the week. The outstanding amount is then likely to be sent swiftly.