Manchester City could face restrictions in next year's Champions League[GETTY]City are also expected to be fined and ordered to make a cut in the number of players permitted in their 25-strong squad for Europe's elite club completion when UEFA's club financial control board meets over the next two days.
The sanctions packages are understood to be part of a settlement offer from UEFA to clubs like City and Paris Saint Germain - whose owners are from Abu Dhabi and Qatar respectively - who have fallen foul of the new financial fair play regulations. The clubs can accept, reject or try to negotiate ahead of the meeting.
Both UEFA and City have refused to comment but it is understood the relevant sanction in the FFP rules set to be applied is: "Restriction on the number of players that a club may register for participation in UEFA competitions, including a financial limit on the overall aggregate cost of the employee benefits expenses of players registered on the A-list for the purposes of UEFA club competitions."
Manuel Pellegrini may have to leave some big names out of his squad in Europe [GETTY]The idea of the sanctions is that a restriction in the expenditure on players by both clubs who have breached the rules will help them in their efforts to comply with the limits on losses in future seasons.
Under UEFA's financial rule clubs were allowed a maximum loss of £37m in each of the last two years. City, however, made losses of £97.9million in 2012 and £51.6million last year, although they were able to write off some sums spent on facilities, youth development and a number of other items.
UEFA president Michel Platini has already emphasised that clubs will not be banned from European competition for breaching financial rules in the immediate future.
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