London - Manchester City have been banned from European competitions for the next two seasons for "serious financial fair-play breaches", UEFA announced on Friday, with the verdict immediately contested by Pep Guardiola's English champions.
Guardiola's City face Real Madrid in this season's Champions League last 16.
"The adjudicatory chamber, having considered all the evidence, has found that Manchester City Football Club committed serious breaches of the UEFA Club Licensing and Financial Fair Play Regulations by overstating its sponsorship revenue in its accounts and in the break-even information submitted to UEFA between 2012 and 2016," European football's governing body said.
Guardiola's City outfit currently sit second in the Premier League table, meaning that the fourth Champions League slot available for English teams would likely go to the fifth-placed club this term.
The ban will raise questions about the future of City coach Guardiola and their key players.
Seven-time European champions AC Milan were banned from this season's Europa League for FFP breaches.
City face Real Madrid in their first leg at the Bernabeu on February 26, with the second leg at the Etihad Stadium on March 17.