UEFA are trying to hand down the biggest fine in the history of football to Manchester City due to breaking Financial Fair Play regulations, reports claim.
City, along with Paris St-Germain, were in a group of nine clubs to have been found in breach of the rules.
All the clubs have been negotiating with UEFA over their punishments.
According to reports in both France and the UK, UEFA want to fine City £50m and limit their Champions League squad next season to 21 players instead of the usual 25.
City are believed to be unhappy with the severity of their punishment but only have until Friday to agree a deal with European football’s governing body.
City have been negotiating with the Club Financial Control Body but the decision may now how to go to arbitration.
The Daily Telegraph reports: “The parties are so far apart that City are in danger of being the only one of nine clubs facing punishment who choose to fight on beyond Friday’s deadline and take their chances with the CFCB’s adjudicatory chamber.”
No club is expected to be excluded from the Champions League for breaching the spending limits, the maximum possible sanction.
Both Manchester City and PSG are believed to have fallen foul of the FFP rules with sponsorship deals related to each clubs’ owners.
Abu Dhabi-owned City have a £40 million-a-year deal with Etihad Airways, while Qatar-owned PSG have a back-dated deal with the Qatar Tourist Authority which is worth up to £165 million a year.
Clubs can lose up to £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.