NYON: French champions Paris Saint-Germain and Manchester City are believed to be among around 18 European clubs judged to be in breach of UEFA’s financial fair play regulations.

The European federation is reported to have made settlement offers to all clubs ahead of formal meetings on Thursday.

UEFA president Michel Platini has already ruled out European competition suspension next season so the penalties available to UEFA include a fine or a caution or some sort of European squad restriction.

Club accounts taken into consideration are those from the past two seasons, 2011-12 and 2012-13. Total losses of £37m (€45m) are permitted as long as clubs have owners who can guarantee the sums. Certain infrastructure and youth development costs are excluded from the calculations.

Qatar-owned PSG have been the club under most scrutiny after they wiped out their losses with a huge and back-dated sponsorship deal with the Qatar Tourist Authority.

City posted combined losses of almost £149m for the past two seasons – £97m in 2012 and £51.6m in 2013.

Both clubs have spent heavily over the past two seasons, as if trying to get ahead of the financial game before the FFP door was shut.