UEFA Investigators want Manchester City to be banned from the Champions League for a season if they are found guilty of breaking financial rules.
According to BBC Sports, a final decision is yet to be made by the Chief Investigator.
Manchester City are alleged to have had broken Financial Fair Play regulations by inflating the value of a multimillion‑pound sponsorship deal.
City were fined 49 million pounds in 2014 for a previous breach of regulations.
The Premier League champions have denied any wrongdoing.