Manchester City will have their net spending on transfers next season limited to £49million as part of wide-reaching sanctions for breaching UEFA's financial fair play rules.
The club have agreed a settlement offer with UEFA which confirms a number of other sanctions that had already been in the public domain.
These include a 60million euro fine (£49million) - a record for football, though 40million euros of that will not be imposed if the club meets new break-even limits - and City being handed a reduction in their Champions League squad for next season from 25 to 21 players.
The sanctions also includes a salary freeze on their Champions League squad for the next two seasons.
City said in a statement they had agreed to limit their net spending on new players to 60million euro (£49million).
The statement read: "The club's expenditure on new players for the upcoming summer transfer window, on top of income from players it might sell, will be limited to 60m euros. This will have no material impact on the club's planned transfer activity."
City said there had been "a fundamental disagreement" over the interpretation of the FFP regulations on players purchased before 2010 but that it had "decided to enter into a compromise agreement with UEFA".
French club Paris Saint Germain were handed virtually identical sanctions as City, while the other clubs to have failed FFP were revealed as Galatasaray, Trabzonspor and Bursaspor from Turkey, Russian sides Zenit St Petersburg, Anzhi Makhachkala and Rubin Kazan, plus Levski Sofia from Bulgaria.
City's statement added: "The MCFC Champions League squad for the 2014-15 competition will be limited to 21 players. In 2013-14 the club registered 23 players for the competition and used 21.
"The wage bill of the whole club (playing and non-playing staff) for 2014-15 will need to remain at the same level as that of 2013-14 season.
"It is important to note that additional bonuses for performances can be paid outside this number. Importantly, in reality, the existing MCFC business plan sees a natural decline in that wage bill."
"The nature of conditions that will result in the lifting of sanctions means that the club expects to be operating without sanction or restriction at the commencement of the 2015-16 season."
City have agreed to cut the losses to a maximum of 20m euros (£16.3m) for the 2013-14 financial year and 10m euros (£8.2m) for the 2014-15 season.
The statement said the club expected to be operating without any UEFA restrictions by the beginning of the 2015-16 season and added: "In normal circumstances, the club would wish to pursue its case and present its position through every avenue of recourse. However, our decision to do so must be balanced against the practical realities for our fans, for our partners and in the interests of the commercial operations of the club."
City's £400million, 10-year Etihad sponsorship deal was passed by UEFA but the club have agreed not to increase the value of two "second-tier commercial partnerships" with other parties related to their Abu Dhabi-based owners.
The club have also agreed that revenues from the sale of image rights to related parties will not be included in future break-even calculations.
However, UEFA has downgraded the value of PSG's 200million euro annual deal with the Qatar Tourism Authority and "a fair value, significantly below that submitted by the club, has been assigned", said the European body.
The sanctions for the other clubs were:
:: Paris St Germain: 60million euro fine, Champions League squad size cut to 21, transfer spending restrictions, two-year squad salary freeze.
:: Zenit St Petersburg: 12million euro fine, Champions League squad size cut to 22, transfer spending restrictions, two-year squad salary freeze.
:: Anzhi Makhachkala: 2million euro fine, Champions League squad size cut to 21, transfer spending restrictions, two-year squad salary freeze.
:: Rubin Kazan: 6million euro fine, Champions League squad size cut to 21, transfer spending restrictions, two-year squad salary freeze.
:: Galatasaray: 200,000 euro fine and one-year squad salary freeze.
:: Bursaspor: 200,000 euro fine and one-year squad salary freeze.
:: Trabzonspor: 200,000 euro fine and one-year squad salary freeze.
:: Levski Sofia: 200,000 euro fine and one-year squad salary freeze.