The Court of Arbitration for Sport (CAS) are set to release a verdict in the coming days and it is understood that City were given indication on Tuesday morning that they had won.
Manchester City are anxiously waiting to find out if they will be hit by a transfer ban, after allegedly breaching rules with regards the signing of Argentine starlet Benjamin Garre.
Velez accused Federation Internationale de Football Association of allowing City to break their own rules, claiming they acted unethically by contacting Garre when he was 15 and then flouted transfer regulations by signing the winger shortly after his 16th birthday.
Federation Internationale de Football Association ratified the transfer and upheld City's argument that their capture of Garre, who is now playing in City's Under-23 side, was not a breach of the regulations because he holds an Italian passport.
Velez appealed to Federation Internationale de Football Association, claiming that transfer rules state that players aged 18 or under can only move between European clubs.More news: Strikes against Syria are underway; Britain, France joining in attacks
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That case has been running since July, with a court case heard nine months ago.
In May 2017, the Premier League fined City £300,000 ($429,000) and banned the club from signing academy players for two years after they were found to have approached the family of two young players who were registered with other clubs. A verdict due last September was delayed but now the CAS are prepared to finally deliver their verdict in the next week. Both Real Madrid and Barcelona have also served bans in recent years also.
Federation Internationale de Football Association ruled the deal for Garre was above board and hadn't broken the rules, despite allegations from Velez that he was approached before turning 16. That's not good behaviour between two clubs.
City are now banned from signing academy players from certain English clubs after being found guilty of breaching Premier League youth development rules over the signing of two players.
But City manager Pep Guardiola is now free to continue his transfer plans as he looks to strengthen his squad once the transfer window reopens at the end of the season. If they are disciplined by CAS, they will most likely appeal and delay the implementation of the ban.