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English Premier League crisis club Portsmouth moved nearer administration on Tuesday when their bid to have a winding up petition from British tax authorities struck out was rejected by a judge.

Cash-strapped Portsmouth had argued the Value Added Tax portion of its huge tax bill was too high by as much as 7.5 million pounds (12.2 million dollars)

But Judge Guy Newey found against Portsmouth at London's High Court and ruled tax collectors Her Majesty's Revenue and Customs (HMRC) could proceed with their legal action.

A court spokesman said: "At the High Court today (Tuesday) Mr Justice Newey dismissed an application from Portsmouth Football Club Limited for a winding up petition to be struck out.

"A further hearing to consider HMRC's winding up petition will take place in due course."

That hearing is now expected on February 10, and the outcome could send bottom-of-the table Pompey a step closer to becoming the first Premier League club to enter administration, a move that would likely see them docked league points they cannot afford to lose.

Portsmouth have been facing off-field problems since before the start of the season with the protracted sale of the club from Alexandre Gaydamak to Sulaiman Al-Fahim hampering the south coast side's ability to bring in new players.

Al-Fahim was only in charge for a matter of weeks before selling on to Saudi businessman Ali Al-Faraj, who has struggled to cope with the club's debts and has acquired the nickname 'Al-Mirage' for his absence from the ground on match days.

Pompey have three times this season failed to pay their players on time and last week saw the Premier League divert seven million pounds in television revenues to other clubs owed transfer fees by the south coast side.

So concerned are the Premier League they have placed Portsmouth, who as recently as 2008 won the FA Cup, under a transfer embargo.

But the club bit back on Monday by threatening League chiefs with arbitration proceedings saying they had agreed payment scheduled with other clubs.

Portsmouth executive director Mark Jacob said on Monday: "The total amount that we directed the Premier League to discharge and pay these clubs is approximately five million pounds.

"So there is a net balance due to the club approaching two million pounds. We cannot see how they can keep the money and also continue with the embargo."

Former Pompey manager Harry Redknapp, now at Tottenham, former chairman Milan Mandaric, now at Leicester, and chief executive Peter Storrie all face individual charges of tax evasion resulting from their time at Fratton Park.

Portsmouth, four points adrift at the foot of the table, are at home to top-flight rivals Sunderland in the fourth round of the FA Cup on Saturday.