Manchester City held early-stage settlement talks with the Premier League over alleged financial rule breaches, but discussions broke down, Bloomberg reported, citing people familiar with the matter.

The proposed settlement would have focused on a substantial financial payment rather than relegation or stripping the club of titles. The talks took place before a commission found that the club had inflated financial results by more than 900 million pounds, the report said.

Manchester City, one of the most successful British soccer clubs of recent years, faces potential penalties including points deductions, fines or expulsion from the league and is appealing the commission's findings.

Manchester City did not immediately respond to MT Newswires' request for comment.