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Manchester City and Paris St Germain are expected to have financial restrictions imposed on their squads for next season's Champions League after breaching UEFA's spending rules.
The expenditure restrictions for breaking the financial fair play (FFP) rules would see both clubs effectively given a limit on the salary bill of their European A squad.
The clubs are also expected to be ordered to make a cut in the number of players permitted in the A squad, which is normally 25-strong, and to be handed large fines when UEFA's club financial control board (CFCB) meets on Thursday and Friday, when a number of other European clubs will also be dealt with.
The sanctions packages are understood to be part of a settlement offer to the clubs, which they 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."
Manchester City: The latest match picturesShow all 70 1 /70Manchester City: The latest match pictures Manchester City: The latest match pictures Manchester City 2 Sheffield Wednesday 1 James Milner of Manchester City scores his team's second goal to take a 2-1 lead
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Manchester City: The latest match pictures Manchester City 2 Sheffield Wednesday 1 James Milner celebrates scoring his team's first goal
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Manchester City: The latest match pictures Manchester City 4 Aston Villa 0 Yaya Toure rounds off the scoring for City after a superb solo run
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Manchester City: The latest match pictures Manchester City 4 Aston Villa 0 Stevan Jovetic celebrates after getting on the score sheet with City's third
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Manchester City: The latest match pictures Manchester City 4 Aston Villa 0 Samir Nasri misses a good chance for City
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Manchester City: The latest match pictures Manchester City 4 Aston Villa 0 Vincent Kompany and Samir Nasri celebrate with Edin Dzeko after his second goal of the night
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Manchester City: The latest match pictures Manchester City 4 Aston Villa 0 Edin Dzeko celebrates after putting City in front
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Manchester City: The latest match pictures Manchester City 4 Aston Villa 0 Edin Dzeko wheels away after opening the scoring for City
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Manchester City: The latest match pictures Manchester City 4 Aston Villa 0 Edin Dzeko scores the opening goal past Brad Guzan
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Manchester City: The latest match pictures Manchester City 4 Aston Villa 0 Joe Hart prepares himself for the game
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Manchester City: The latest match pictures Everton 1 Manchester City 1 Sergio Aguero fires home City's equaliser
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Manchester City: The latest match pictures Everton 1 Manchester City 1 Sergio Aguero dribbles past John Stones
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Manchester City: The latest match pictures Everton 1 Manchester City 1 Ross Barkley celebrates after opening the scoring with a superb strike
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Manchester City: The latest match pictures Crystal Palace 0 Manchester City 2 Jason Puncheon is challenged by Aleksandar Kolarov
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Manchester City: The latest match pictures Crystal Palace 0 Manchester City 2 Referee Howard Webb looks on as Samir Nasri shields the ball from Mile Jedinak and Adrian Mariappa
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Manchester City: The latest match pictures Crystal Palace 0 Manchester City 2 Yaya Toure celebrates his goal
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Manchester City: The latest match pictures Crystal Palace 0 Manchester City 2 Yaya Toure finishes in style after a powerful run to put City two in front
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Manchester City: The latest match pictures Crystal Palace 0 Manchester City 2 Marouane Chamakh is upended by Pablo Zabaleta
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Manchester City: The latest match pictures Crystal Palace 0 Manchester City 2 Edin Dzeko celebrates after breaking the deadlock within five minutes and giving City the lead
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Manchester City: The latest match pictures Crystal Palace 0 Manchester City 2 Edin Dzeko heads home City's opener
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Manchester City: The latest match pictures Manchester City 2 Sunderland 2 Samir Nasri clutches his shirt and looks to the heavens after missing the chance to rescue a victory for Manchester City
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Manchester City: The latest match pictures Manchester City 2 Sunderland 2 Vito Mannone fails to keep out Samir Nasri's late strike as the midfielder equalises for City
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Manchester City: The latest match pictures Manchester City 2 Sunderland 2 Connor Wickham celebrates scoring for the second time
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Manchester City: The latest match pictures Manchester City 2 Sunderland 2 Connor Wickham scores to pull Sunderland back into the tie
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Manchester City: The latest match pictures Manchester City 2 Sunderland 2 Fernandinho gives Manchester City the lead with a second-minute striker past Vito Mannone
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Manchester City: The latest match pictures Liverpool 3 Manchester City 2 Philippe Coutinho fires in Liverpool's winner
Manchester City: The latest match pictures Liverpool 3 Manchester City 2 David Silva pulls one back for Manchester City
Manchester City: The latest match pictures Liverpool 3 Manchester City 2 Martin Skrtel heads in Liverpool's second
Manchester City: The latest match pictures Liverpool 3 Manchester City 2 Raheem Sterling celebrates his opening goal with Luis Suarez
Manchester City: The latest match pictures Manchester City 4 Southampton 1 Stevan Jovetic is congratulated by Samir Nasri after scoring City's fourth
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Manchester City: The latest match pictures Manchester City 4 Southampton 1 Joe Hart makes a diving save
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Manchester City: The latest match pictures Manchester City 4 Southampton 1 Edin Dzeko celebrates with David Silva after scoring City's third just before halftime
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Manchester City: The latest match pictures Manchester City 4 Southampton 1 Edin Dzeko heads in a goal to give City a 3-1 lead
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Manchester City: The latest match pictures Manchester City 4 Southampton 1 Samir Nasri celebrates with his teammates after putting City back in front
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Manchester City: The latest match pictures Manchester City 4 Southampton 1 Southampton players celebrate after Rickie Lambert's equaliser from the penalty spot
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Manchester City: The latest match pictures Manchester City 4 Southampton 1 Rickie Lambert fires home a penalty to bring Southampton level
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Manchester City: The latest match pictures Manchester City 4 Southampton 1 England attacker Jay Rodriguez is injured and has to go off on a stretcher
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Manchester City: The latest match pictures Manchester City 4 Southampton 1 Yaya Toure puts City ahead from the spot
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Manchester City: The latest match pictures Manchester City 4 Southampton 1 Referee Chris Foy points to the penalty spot after Edin Dzeko is brought down
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Manchester City: The latest match pictures Arsenal 1 Manchester City 1 Edin Dzeko can't believe his that deflected effort goes wide
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Manchester City: The latest match pictures Arsenal 1 Manchester City 1 Mathieu Flamini celebrates his equaliser for the Gunners
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Manchester City: The latest match pictures Arsenal 1 Manchester City 1 Mathieu Flamini celebrates after putting Arsenal level
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Manchester City: The latest match pictures Arsenal 1 Manchester City 1 Olivier Giroud remonstrates with referee Mike Dean
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Manchester City: The latest match pictures Arsenal 1 Manchester City 1 Mikel Arteta plays the ball past Jesus Navas
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Manchester City: The latest match pictures Arsenal 0 Manchester City 1 Tomas Rosicky battles for the ball with Yaya Toure
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Manchester City: The latest match pictures Arsenal 1 Manchester City 1 Martin Demichelis confronts Tomas Rosicky after the Arsenal player's tackle leaves Gael Clichy injured
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Manchester City: The latest match pictures Arsenal 1 Manchester City 1 The Arsenal players walk back to half way line looking dejected after conceding the opening goal
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Manchester City: The latest match pictures Arsenal 1 Manchester City 1 David Silva and Edin Dzeko celebrate after the Spaniard's opening goal
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Manchester City: The latest match pictures Arsenal 1 Manchester City 1 Yaya Toure holds off Santi Cazorla
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Manchester City: The latest match pictures Arsenal 1 Manchester City 1 Fernandinho holds off the challenge of Mathieu Flamini
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Manchester City: The latest match pictures Manchester United 0 Manchester City 3 Edin Dzeko celebrates one of his two goals at Old Trafford - both of which came early at the start of each half
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Manchester City: The latest match pictures Manchester United 0 Manchester City 3 David De Gea looks dejected after conceding to Manchester City
Manchester City: The latest match pictures Manchester United 0 Manchester City 3 Marouane Fellaini is taken off, much to the delight of United fans after another abject performance
Manchester City: The latest match pictures Manchester United 0 Manchester City 3 England team-mates Joe Hart and Dnny Welbeck come together
Manchester City: The latest match pictures Manchester United 0 Manchester City 3 Jesus Navas sees his cross blocked by Patrice Evra
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Manchester City: The latest match pictures Manchester United 0 Manchester City 3 Yaya Toure sweeps in his side's third goal late in the match
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Manchester City: The latest match pictures Manchester City 5 Fulham 0 Martin Demichelis rounds off the scoring for City
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Manchester City: The latest match pictures Manchester City 5 Fulham 0 Yaya Toure celebrates his second goal of the afternoon
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Manchester City: The latest match pictures Manchester City 5 Fulham 0 Yaya Toure converts his first penalty
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Manchester City: The latest match pictures Hull 0 Manchester City 2 Edin Dzeko celebrates with David Silva and Jesus Navas
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Manchester City: The latest match pictures Hull 0 Manchester City 2 Edin Dzeko scores City's second
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Manchester City: The latest match pictures Hull 0 Manchester City 2 George Boyd and Joe Hart have to be separated after a bust up
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Manchester City: The latest match pictures Hull 0 Manchester City 2 David Silva celebrates his opening goal
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Manchester City: The latest match pictures Hull 0 Manchester City 2 Vincent Kompany receives a red card for a tackle on Nikica Jelavic
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Manchester City: The latest match pictures Barcelona 2 Manchester City 1 Gerard Pique goes up for a head with Vincent Kompany
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Manchester City: The latest match pictures Barcelona 2 Manchester City 1 Lionel Messi celebrates after opening the scoring in this Champions League second-leg match
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Manchester City: The latest match pictures Barcelona 2 Manchester City 1 Joe Hart saves at the feet of Cesc Fabregas
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Manchester City: The latest match pictures Barcelona 2 Manchester City 1 Aleksandar Kolarov does his best to stop Neymar
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Manchester City: The latest match pictures Barcelona 2 Manchester City 1 Sergio Aguero pictured at the Nou Camp
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Manchester City: The latest match pictures Barcelona 2 Manchester City 1 David Silva in action at the Nou Camp
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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.
Clubs can lose up to 45 million euros (£37million) over the last two years under UEFA's rules.
City made losses of £97.9million in 2012 and £51.6million last year, but were able to write off some sums spent on facilities, youth development and a number of other items.
Both Abu Dhabi-owned City and PSG have a number of sponsorship deals related to their owners which the CFCB had to determine were of fair market value.
Qatari-owned PSG effectively wiped out its annual losses of 130 million euros (£107.4million) by announcing a back-dated sponsorship deal with the Qatar Tourism Authority worth up to 200 million euros a year.
According to French newspaper La Parisien, the CFCB determined that PSG's sponsorship deal with the tourism authority should have a fair market value of half its current price.
No other English club has been deemed to have breached the FFP rules, and UEFA president Michel Platini said last week he did not think any of the clubs - understood to number fewer than 20 - who breached rules will be banned from European competition next season.
All sanctions are expected to be confirmed by UEFA's FFP adjudicatory body next week.
PA
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