Manchester City have accepted the sanctions, which also include a salary freeze on their Champions League squad for the next two seasons, and to “significantly limit spending in the transfer market for seasons 2014/2015 and 2015/2016”, said UEFA in a statement.

The other clubs to have failed FFP are: Paris St Germain from France, Galatasaray, Trabzonspor and Bursaspor from Turkey, Russian sides Zenit St Petersburg, Anzhi Makhachkala and Rubin Kazan, plus Levski Sofia from Bulgaria.

City said in a statement they had agreed to limit their net spending on new players to €60m.

The statement said: “The club’s expenditure on new players for the upcoming summer transfer window, on top of income from players it might sell, will be limited to €60m. This will have no material impact on the club’s planned transfer activity.”

City said there had been “a fundamental disagreement” over the interpretation of the FFP regulations on players purchased before 2010 but that it had “decided to enter into a compromise agreement with UEFA”.

The club statement added: “The MCFC Champions League squad for the 2014-15 competition will be limited to 21 players. In 2013-14 the club registered 23 players for the competition and used 21.

“The wage bill of the whole club (playing and non-playing staff) for 2014-15 will need to remain at the same level as that of 2013-14 season.

“It is important to note that additional bonuses for performances can be paid outside this number. Importantly, in reality, the existing MCFC business plan sees a natural decline in that wage bill.

“The nature of conditions that will result in the lifting of sanctions means that the club expects to be operating without sanction or restriction at the commencement of the 2015-16 season.”