WREXHAM boss Denis Smith insists the club can overcome a 10-point deduction to survive in League One.

The Welsh club, with debts of £2.5m, went into administration on Friday, and will now be docked 10 league points under new Football League rules.

That will drop Wrexham into relegation trouble, but Smith says that is better than the threat of extinction.

"We have over half the season to go and there is every chance of us surviving in this league," Smith told BBC Sport.

By petitioning to go into administration, the club avoided next Wednesday's deadline of an Inland Revenue winding-up order over an £1m paid bill.

Wrexham have already said they will appeal against the Football League's punishment in what would be the first case of its kind.

Under the League's rules, the club would have to prove they entered administration because of "unavoidable or unforeseeable" circumstances.

On informing the League of their decision to appeal, which must happen within the next seven days, the club would need to deposit £5,000 to cover costs.

Independent consultants would then carry out a review of the club's activities leading up to their move into administration. Wrexham would also have to cover the costs of that report.

The League's Sporting Sanctions Appeal Panel would then decide to:

* confirm the deduction of 10 points; or
* set aside the deduction of 10 points and substitute a deduction of such lower number of points as it shall deem appropriate; or
* order that there shall be no sanction at all

Smith said: "It's very difficult on the players and the fans to have this done to them through no fault of their own.

"We've got to accept it and make it a challenge and see if we can get out of the problems.

He added: "We can try (to appeal) but it's the first time it's happened.

"We don't know how the league would view it but if they looked at it sensibly they might look at us with sympathy."

Former Wales manager Mark Hughes, who was born in Wrexham, has backed Smith and the Wrexham players to get the results on the pitch to avoid relegation.

The Blackburn boss added: "Everyone in football has been really disappointed with the situation that has developed, and having come from there I probably know as much as anyone how much it means.

"I was born just down the hill from the football club and my children were too.

"The Racecourse Ground is a fantastic facility and for that to be taken away from the community would be a crying shame.

"Hopefully going into administration will give them the breathing space they need - it is probably the only way they can survive."

As well as the points deduction, regular cash payments from the Football League could also be withheld as a safeguard against the club failing to complete the season.

Wrexham are away to Scunthorpe in the second round of the FA Cup on Friday night, and a cup run would provide some welcome relief as well as important extra revenue.