Manchester City were hit with an unprecedented two year ban from the Champions League last night in a bombshell Uefa financial fair play verdict that stunned the football world.

Pep Guardiola will consider his future as manager in the summer, Telegraph Sport understands, unless the club is able to overturn a verdict which condemns "serious breaches" in payments by executives.

The reigning Premier League champions announced immediate plans to appeal last night after being left reeling by the punishment, which is set to come into effect next season. Uefa, which also fined City 30 million euros (£25m), had had been investigating the club for more than a year since an alleged deception caught the governing body's eye following revelations in the Football Leaks scandal.

Documents first published in the German magazine Der Spiegel suggested almost £60 million was paid directly into the club by their billionaire Arab owners but declared as sponsorship. Telegraph Sport had disclosed more than a year ago that Uefa were considering a one year ban, but it would appear to have been doubled in recent months over the club's perceived lack of of cooperation. The players, many of whom were returning from their winter breaks last night, are set to attend a crisis talks with chief executive officer Ferran Soriano today, Telegraph Sport understands.

City now face the additional threat of a potential Premier League points deduction. Richard Masters, the league's chief executive, said last week that he "cannot comment" on domestic investigations into the same allegations that were pursued by Uefa. Subject to City's appeal, the fourth Champions League spot would go to the English team that finishes this season in fifth place under Uefa regulations - assuming Guardiola's side remain in the top four.

In a brief statement, Uefa said the punishment was based on "serious breaches of the Uefa Club Licensing and Financial Fair Play Regulations by overstating its sponsorship revenue in its accounts and in the break-even information submitted to Uefa between 2012 and 2016".

The punishment was issued by Uefa's Adjudicatory Chamber of the Club Financial Control Body (CFCB), which the governing body insists has an "independent" mandate. "The adjudicatory chamber has also found that in breach of the regulations the Club failed to cooperate in the investigation of this case by the CFCB," a statement added.