According to UK Sun report, world's football governing body, FIFA are ready to slam Man City with the same ban handed to Chelsea for flouting rules guiding the transfer of minors following series of investigations.
The news will come as a devastating blow to Pep Guardiola, who was planning a serious summer spending spree.
A source with knowledge of the investigation told The Times that the breaches alleged to have been committed by City were very similar to those that led to Chelsea being sanctioned, and that it looks certain that the same two-window transfer ban is imposed.
Federation Internationale de Football Association has been investigating City's global transfers for several years, although the club were cleared of breaking the rules when they signed Benjamin Garre from Velez Sarsfield in 2016 just after the Argentine midfielder's 16th birthday.More news: Children, Foreigners Among Those Killed In Attacks On Christchurch Mosques
"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".
The investigation was brought into a spotlight when Manchester City had a deal in agreement with Tom Vernon to reject the best prospect from Right to Dream Academy.
This breaches having third-party owners hip of players as it seemingly gives City a clear hold on a player in another club.
Speaking ahead of City's FA Cup quarter-final with Swansea City on Saturday, Guardiola said there is little he can do about the situation and remains firmly focused on delivering positive results for the club. "The squad's good, it's really good".More news: Far-Right Australian Politician Fraser Anning Egged By Teen
City are now under investigation by the Football Association and Premier League for possible infractions in financial fair play and youth transfers.
City manager Pep Guardiola refused to be drawn on the report at his pre-match press conference on Friday.
A Chelsea spokesman told i: "We do not comment on speculation about confidential contracts or player-related matters". I'm concerned what I have to do with my job.
As well as Chelsea, Spanish trio Atletico Madrid, Barcelona and Real Madrid have all been punished for signing under-age players from overseas in the past.More news: Wales coach Warren Gatland: It was a fantastic performance