City face the prospect of a two window ban from Federation Internationale de Football Association amid allegations of flouting rules around the signing of players aged Under-18 from overseas or breaching third party ownership (TPO) regulations.
A source revealed that the Premier League defending champions are likely not to be allowed to do transfer business in the two immediate windows - similar to what Chelsea are going to go through as well.
Fifa's action is unlikely to be announced before next month as the final parts of the case have still to be...
Two players from the academy, Sierra Leone's George Davies and Ghanaian Dominic Oduro told the newspaper that they played for City's youth team before they turned 18 a year ago.
It is the second successive year that City have faced Premier League opponents in Europe's premier club competition, having lost to Liverpool in the last eight last season.
As reported by The Sun, football's governing body has been conducting a thorough investigation and has confirmed City have breached the rules on the transfers of minors.
"The Investigatory Chamber of the independent UEFA Club Financial Control Body has today opened a formal investigation into Manchester City FC for potential breaches of Financial Fair Play (FFP) regulations".
It was alleged that City had a deal in place with Nordsjaelland owner Tom Vernon that they will have first refusal over both players.
If that is true, the English outfit will face no lesser than a transfer ban because of the third-party infringement as City could be argued that they had the influence of other clubs to sign the players.
A Chelsea spokesman told i: "We do not comment on speculation about confidential contracts or player-related matters".
City manager Pep Guardiola refused to be drawn on the report at his pre-match press conference on Friday.
"I understand your job, I answered five questions last week, I can not be the right guy".
When asked if City's squad would be strong enough to withstand a transfer ban, Guardiola responded: "Of course". Even though the bans of Real Madrid and Barcelona were cut short, the appeals from Chelsea and Atletico Madrid were turned down without a blink of an eye.
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Turkey, US, Czech Republic and Japan matchup in World Cup
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New Zealand mosque attack death toll rises to 50
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Windows 10 Is Getting Updated
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Indian Wells Open: How to watch Angelique Kerber vs
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Mass shootings at NZ mosques kill 49; man charged
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