A multi-million pound windfall earmarked for clubs like Stevenage in the EFL is under threat - following Manchester City's decision to sue the Premier League.

The champions have launched a legal bid against England's top flight, wanting to scrap rules that limits the amount of money that can be offered in sponsorship by companies linked to owners of clubs.

That case begins on Monday and is expected to last two weeks.

However, The Times, who broke the initial story, have now said football league clubs like League One Boro could see their share of a £900m funding deal in jeopardy.

And the newspaper have said that sources at some Premier League clubs blame the court case for the breakdown in agreeing a deal in March, saying they are reluctant to commit extra funds to the EFL if the financial rules limiting spending in the Premier League are deemed unlawful.

The Times reports one source saying: "If we have to spend more to even try to keep pace with clubs like City, we might need to hold on to that money".

EFL clubs are hoping to receive an extra £150m per season over six years from the Premier League, part of the so-called 'new deal for football'.

The failure to agree a deal in March came just a few weeks after City filed their claim against the Premier League on February 16.

It was reported at the time that as many as 10 clubs opposed the new deal for the lower divisions.