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Manchester City have been referred to a Club Financial Control Body (CFCB) adjudicatory chamber by UEFA following their investigation over a potential breach of financial fair play (FFP) rules.
UEFA had launched an investigation into alleged breaches of FFP in March, which the Premier League champions have denied.
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"The Club Financial Control Body (CFCB) chief investigator, after having consulted with the other members of the independent investigatory chamber of the CFCB, has today decided to refer Manchester City FC to the CFCB adjudicatory chamber following the conclusion of his investigation," a UEFA statement read.
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"The CFCB investigatory chamber had opened an investigation into Manchester City FC on 7 March 2019 for potential breaches of Financial Fair Play (FFP) regulations that were made public in various media outlets.
"UEFA will not be making any further comment on the matter until a decision is announced by the CFCB adjudicatory chamber.
City released a statement in response, where they said they were "confident of a positive outcome."
"Manchester City Football Club is disappointed, but regrettably not surprised, by the sudden announcement of the referral to be made by the CFCB IC Chief Investigator Yves Leterme," the City statement read. "The leaks to media over the last week are indicative of the process that has been overseen by Mr. Leterme.
"Manchester City is entirely confident of a positive outcome when the matter is considered by an independent judicial body. The accusation of financial irregularities remains entirely false and the CFCB IC referral ignores a comprehensive body of irrefutable evidence provided by Manchester City FC to the Chamber.
"The decision contains mistakes, misinterpretations and confusions fundamentally borne out of a basic lack of due process and there remain significant unresolved matters raised by Manchester City FC as part of what the Club has found to be a wholly unsatisfactory, curtailed, and hostile process."
A recent report in the New York Times had suggested UEFA would push for a one-year ban from the Champions League if City are found guilty.
And City issued a strongly-worded statement in response, where they said the report was "extremely concerning."