City released a statement Tuesday saying the club has provided "comprehensive proof" that it did not break financial regulations, but the person said the Champions League ban is being pursued by UEFA financial investigators, confirming a New York Times report.
An investigatory panel led by former Belgian Prime Minister Yves Leterme met two weeks ago in Switzerland and they are expected to announce their findings in the coming days, and according to reports a suspension of at least one season from the Champions League is expected to be the result.
And, if a recent report by the 'New York Times' is to be believed, Pep Guardiola's side may have to wait yet another season to taste victory on Europe's biggest stage.
Most fans will consider Liverpool's magical Premier League campaign a success given how far the Reds progressed since 2017-18 and the fact they pushed Manchester City until the final day of the season.
"The accusation of financial irregularities is entirely false", Manchester City announced in a statement earlier in the season.More news: UAE Says 3 Western Countries Part of Probe into Attack on Ships
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City were fined £49million and hit with restrictions on transfer spending and the size of their Champions League squad after FFP breaches were originally investigated in 2014.
The Reds ended up finishing in second place in the Premier League table and a point behind Manchester City as they missed out on the trophy.
Since Sheik Mansour bin Zayed al-Nahyan became the controlling owner of the club, Manchester City has been viewed as one of the world's richest clubs and has won four of the last eight Premier League titles.
Manchester City would still have the right to appeal to the Court of Arbitration for Sport and a lengthy legal process is likely, while the club have continually denied any wrongdoing throughout.
FIFA, the Premier League and the Football Association (FA) are also undertaking investigations into City's operations in relation to various aspects of the Football Leaks allegations.