Manchester City are facing UEFA sanctions for breaching Financial Fair Play rules.

City could be limited to a 21-man Champions League squad instead of 25 players next season.

City also could face an $83.5 million fine over three years and a cap imposed next season to ensure no increase on this season's squad wage bill.

Both Manchester City and Paris Saint-Germain are believed to have fallen foul of the FFP rules with sponsorship deals related to each clubs' owners.

Paris Saint-Germain can expect to be hit by a four-pronged punishment when UEFA hands out its first financial fair play (FFP) sanctions later this week.

France's main sports daily reported on Tuesday the French champions have failed to convince European football's governing body their recently signed contract with the Qatar Tourism Authority (QTA) is not overvalued.

PSG, which boasts Europe's highest wage bill at 240 million euros, will not be allowed to increase the amount it pays in salaries, and they will have to sell players before being able to spend in the coming transfer window.

UEFA will also reportedly ask PSG to limit their transfer activity, allowing them to buy one player at 60 million euros, but forbidding them to break down that sum to buy two players, for example, at 30 million euros or three at 20 million euros.