UEFA have explained that Manchester City are not being investigated over Financial Fair Play rules after a complaint was issued by the Spanish League.
A statement from La Liga led to reports that an official investigation into the Premier League club, as well as big Ligue 1 spenders Paris Saint-Germain, was to get underway.
And while PSG are being closely looked at following their recent transfer activity, City are not suspected of any wrongdoing.
A UEFA spokesperson said: "There is no investigation into Manchester City with regards to Financial Fair Play regulations. Any reports mentioning such an investigation are unsubstantiated."
La Liga's original letter of complaint had read: "There will be an investigation following the formal complaint filed by La Liga asking UEFA to inspect Paris Saint-Germain and Manchester City FC for violation of financial fair play regulations.
"La Liga, the association of the best football teams in Spain, is pleased that UEFA has opened a formal investigation into financial fair play at Paris Saint-Germain (PSG).
"The investigation comes after La Liga formally requested these tests from PSG and Manchester City FC in August."
Both PSG and Man City spent heavily during the January transfer window with La Liga president Javier Tebas unhappy with the amount of money being thrown about.
He said: "The funding of PSG and Manchester City, thanks to state aid, distorts European competitions and creates an inflationary spiral that irreparably damages the football industry."