Leeds United have failed in their appeal to overturn the 15-point penalty imposed on the club by the Football League, meaning that they remain in sixth position in Coca-Cola League One and will contest the end-of-season promotion play-offs.

The Yorkshire club had been attempting to prove that the League acted outside its jurisdiction by docking the points at the start of this season and took their case to a binding independent arbitration hearing in London, which met for several days before announcing their decision until this afternoon.

A compromise course of action was expected because if the sanction - imposed as punishment for allegedly breaking competition rules on insolvency - was overturned in its entirety and Leeds had all their points restored, the consequences in League One would have been far-reaching.

The club would have jumped into the second automatic promotion place at the expense of Doncaster Rovers, eight points clear of their Yorkshire rivals and automatically promoted alongside Swansea, who top the table.

The Welsh side, who had been nine points clear with only one game to play, were unable to collect the League One trophy in front of their own fans after Saturday's match against Leyton Orient because of the uncertainty over Leeds's position. They are now confirmed as champions.

Leeds were deducted 15 points for failing to exit administration via a Company Voluntary Arrangement (CVA). A majority of more than 75 per cent of fellow Football League clubs then voted to uphold the sanction. Ken Bates, the Leeds chairman, had been forced to put the club in the hands of administrators last May because of debts of about £35 million.

Leeds denied any wrongdoing and agreed to a binding arbitration hearing after initially serving the Football League with a High Court writ.

The tribunal's decision will be of particular concern to fellow League One clubs Bournemouth and Luton Town, who could start next season with a similar handicap after both recently failed to exit administration via a CVA.

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How the League One table still stands

Swansea City 89 points (45 games)

Doncaster Rovers 80 (45)

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Nottm Forest 79 (45)

Carlisle United 79 (45)

Southend United 75 (45)

Leeds United 73 (45)

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Brighton 69 (45)