The club says it is “disappointed but not surprised” and will be appealing the decision.
Manchester City have been banned from the Champions League for the next two seasons for “serious breaches” of UEFA’s financial fair play regulations.
The Premier League champions will be barred from competing in UEFA club competitions and fined €30m (£24.9m), European football’s governing body announced.
UEFA said Manchester City had overstated sponsorship revenue in accounts submitted between 2012 and 2016, and had “failed to co-operate” in the investigation.
Its regulations state a club’s outgoings must not be much higher than its earnings.
A Manchester City statement said it was “disappointed but not surprised”.
“In December 2018, the UEFA chief investigator publicly previewed the outcome and sanction he intended to be delivered to Manchester City before any investigation had even begun,” it said.
“The subsequent flawed and consistently leaked UEFA process he oversaw has meant that there was little doubt in the result that he would deliver.”