The West London club, who were promoted from the Championship last season, are facing a hefty fine that could be as high as £50m under financial fair play (FFP) rules if their accounts show heavy losses.
Club chairman Tony Fernandes has said that any fine will be appealed by the club and if they refuse to cough up the money, the Football League could block its return back into the Football League if relegated.
Asked if exclusion was the 'nuclear option', Harvey, speaking at Soccerex, said: "Theoretically that is the position, but I would hope there would be resolution long before that option even had to be considered.
"We are satisfied we still have the ability under our regulations to charge them for a breach of our rules whilst they were in membership.
"The one thing for certain is that most clubs (in the Premier League) will become a Football League club again."
Clubs who were in the Championship in 2013-14 have until December 1 to submit their accounts for last season, with the Football League announcing any punishments in the New Year.
Clubs who are still in the Championship or League One and breach the rules by having losses greater than £8m will have a transfer embargo imposed at least for the January window.