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
The Chief Minister of the Isle of Man has said the island will have to rely on 'strength of its external relationships' following EU vote
A carer who defrauded an elderly man out of close to £100,000 has today been jailed.
Two men and a woman have been sentenced today after a man was viciously attacked in front of two young children