We present the results of the ongoing XMM-Newton Survey of nearby spiral galaxy M31 . 17 X-ray sources detected in the survey have bright radio counterparts , and 15 X-ray sources coincide with supernova remnant ( SNR ) candidates from optical and radio surveys . 15 out of 17 sources with radio counterparts , not SNR candidates , have spectral properties similar to that observed for background radio galaxies/quasars or Crab-like supernova remnants located in M31 . The remaining two sources , XMMU J004046.8+405525 and XMMU J004249.1+412407 , have soft X-ray spectra , and are associated with spatially resolved H-alpha emission regions , which makes them two new SNR candidates in M31 . The observed absorbed X-ray luminosities of SNR candidates in our sample range from \sim 10 ^ { 35 } to \sim 5 \times 10 ^ { 36 } ergs s ^ { -1 } , assuming the distance of 760 kpc . Most of the SNR candidates detected in our survey have soft X-ray spectra . The spectra of the brightest sources show presence of emission lines and can be fit by thermal plasma models with kT \sim 0.1 - 0.4 keV . The results of spectral fitting of SNR candidates suggest that most of them should be located in a relatively low density regions . We show that X-ray color-color diagrams can be useful tool for distinguishing between intrinsically hard background radio sources and Crab-like SNR and thermal SNR in M31 with soft spectra .