If no agreement is reached City face the prospect of the case being handed to a panel for a non-negotiable decision.
Neither the club nor UEFA would comment but it is understood the City have been negotiating forcefully for a significant reduction in that sanction but have been struggling to make progress.
No club is expected to be excluded from the Champions League for breaching the spending limits, the maximum possible sanction - UEFA president Michel Platini said last month he does not envisage that to happen.
Find out more about Financial Fair Play here.
More top news
We now head into our second week of settled weather.....
Fine, dry and very warm through the week, with plenty of warm sunshine and light winds. Small risk of a few heavy showers from the south
Mo Farah wins the men's elite race