Manchester City are facing a fine of almost £50 million – by far the biggest in the history of football – for breaching Uefa’s Financial Fair Play regulations.

But the Premier League title favourites are refusing to accept the swingeing punishment agreed by European football’s Club Financial Control Body, which is also understood to include a cut in their Champions League squad size for next season.

City have been given more time to negotiate what is known as a ‘settlement’ with the CFCB’s investigatory chamber after failing to do so at the end of last week.

But Telegraph Sport has learnt the parties are so far apart that City are in danger of being the only one of nine clubs facing punishment who choose to fight on beyond Friday’s deadline and take their chances with the CFCB’s adjudicatory chamber.

That chamber would assess afresh whether the club failed to comply with FFP rules in their 2011-13 accounts and, if so, would likely impose an even sterner penalty.

City are understood to be upset at being placed in a similar bracket by the investigatory chamber as Paris St Germain, who are also facing a 60 million-euro (£49.3m) fine over three seasons and a cut in their Champions League squad size from 25 to 21 players.

The Abu Dhabi-owned club’s chief executive, Ferran Soriano, has desperately attempted to argue that the two teams’s breaches are of an entirely different magnitude.

City’s £35m-a-year sponsorship deal with Etihad and PSG’s £167m-a-year contract with the Qatar Tourism Authority were both deemed by the CFCB not to be a valid means for them to balance their books under FFP break-even rules.

Soriano, answerable to City owner Sheikh Mansour for any FFP failure, has claimed that his club should be treated more leniently because they made every effort to comply by legitimate means, while PSG did not.
However, the CFCB’s numbers-based approach has determined that both teams’ failures are comparable and should be sanctioned accordingly.