Her Majesty's Revenue and Customs has lost its High Court judgement against cash-strapped Championship club Portsmouth.
The tax office, which has since said that it will not appeal, was attempting to block proposals to help the Fratton Park side out of administration.
HMRC was seeking an order which would block a proposed Company Voluntary Agreement (CVA) put together by the club's administrators.
But the High Court has ruled in favour of the administrators, with Mr Justice Mann saying: "I propose to find in favour of the company administrators and dismiss the application of HMRC."
No appeal
Pompey chief executive David Lampitt told his club's official website: "We're delighted and relieved at the outcome announced today in the High Court.
"We will wait to see the detailed findings and whether HMRC decide to appeal.
"However, it's obviously a massive step forward in the process towards getting this great club back on its feet.
"I would like to give my personal thanks to all those who have supported us through this difficult period, in particular our fans, commercial partners and Portsmouth City Council.
"The result is a huge relief to the staff here whose loyalty has been unswerving and whose hard work has held the club together."
HMRC said later in a statement: "HMRC is naturally disappointed not to have won this appeal and we can confirm that we do not intend to appeal.
"Our aim when pursuing debt of any kind is to achieve a fair outcome for the taxpayer and we will take this forward in the wider context of the football industry through separate and outstanding legal proceedings over the status of the so-called Football Creditors Rule.
"This is an important and complex judgment and until we have had the opportunity to study it in detail we can't comment further."
