DETROIT (AP) — The city of Detroit could move to avoid a state-appointed emergency manager and craft a deal with the state to guide its troubled finances as early as Wednesday.

The Michigan Court of Appeals cleared the way for a state-appointed review team that would have to sign off on a so-called consent agreement between the state and city to meet Wednesday, dismissing a lawsuit that challenged the review team's right to do so. Detroit's city council also was scheduled to meet Wednesday, and it could vote on a proposed consent agreement with the state.

The city is faced with a nearly $200 million deficit and the unwanted prospect of having an emergency manager appointed if it doesn't act.

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