UEFA lifts Manchester City and PSG sanctions

UEFA has lifted key financial fair play sanctions from Manchester City and Paris Saint-Germain, with both clubs meeting spending limits imposed last year.

Manchester City can register 25 players for next season's UCL. (AAP) Source: EPA

UEFA's decision announced on Friday lets both clubs spend more on player transfers and wages.

The clubs also avoided being fined $29 million of UEFA Champions League prize money they earned last season. Fines would have been triggered for further over-spending.

With the decision, City and PSG can select from Champions League squads of 25 senior players.

Both had only 21 eligible last season as part of initial sanctions imposed by UEFA in May 2014. Then, both clubs forfeited $29 million of Champions League prize money.

UEFA said Man City and PSG stayed "under strict monitoring" and were "subject to some limitations in 2016".