Everton fans held anti-Premier League protests on Sunday
Everton will submit a formal appeal to the independent commission which handed them an unprecedented 10-point Premier League deduction by Friday's deadline.
The Toffees received the biggest sporting sanction in Premier League history after being found to have breached financial rules.
The club admitted the breach but said they were "shocked and disappointed" at the severity of the punishment.
The appeal will be heard and concluded before the end of this season.
The club have not been told how the figure of 10 points was reached by the independent commission which decided the sanction, and feel a sporting penalty for a breach of accounting is unjust.
The appeal will go before a judicial panel which will review the ruling of the commission, assessing the process and if, in their opinion, the penalty issued was fair or not.
The points deduction dropped Everton from 14th in the Premier League table to 19th, in the relegation zone and now five points adrift of safety.
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Former Everton midfielder Leon Osman says Everton 'feel they did all they could'.
Everton's case relates to interest payments on the building of the club's new £760m stadium at Bramley Moore Dock, which they believe were permissible 'add backs' for profit and sustainability calculations in the 2021-22 financial year.
But the commission disagreed and did not accept the club's claim of mitigating factors such as compliance with the Premier League process over the past two years, the impact of the Russia-Ukraine war, which resulted in the loss of the lucrative USM sponsorship, and the impact of the Covid pandemic on the transfer market.
Sources have pointed to Sheffield Wednesday receiving a 12-point deduction three years ago for a "much clearer breach" on spending rules over the sale of their Hillsborough Stadium, with that sanction being halved on appeal.
Everton may face further financial concerns with possible compensation claims from five clubs including Nottingham Forest, Leicester and Southampton.
Burnley and Leeds dropped the threat of legal action over the Toffees' finances in July 2022 after being advised that profit and sustainability rules had been complied with.
But this may be revived after a rulingexternal-link from David Phillips KC in May in which he said he was "satisfied that the applicant clubs have potential claims for compensation".
Clubs have 28 days from the date of this month's ruling to decide if they want to pursue a claim.
Sports lawyer Chris Farnell told BBC Radio 5 Live: "When the chair of the committee's wording said relegated clubs 'have' potential ground for compensation, it was very telling. He didn't say they 'may have', he was clear.
"The door has been left widely open so I expect those relegated clubs from last season to chase this."
Thousands of Everton fans held anti-Premier League protests before Sunday's 3-0 loss against Manchester United over the scale of the punishment.
Meanwhile, a number of regional politicians have raised concerns about Everton being docked 10 points.
Mayor for Greater Manchester Andy Burnham, an Everton season ticket-holder, has written a letter to Premier League chair Alison Brittain calling for the punishment to be declared "null and void".
The Mayor of Liverpool Steve Rotheram has written to Premier League chief executive Richard Masters saying he "completely supports" the club's appeal.
Labour MP for West Derby Ian Byrne tabled an early day motion (EDM) in the House of Commons calling Everton's punishment "grossly unfair".
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Source: bbc.com