Manchester City are damaging European football by driving up player prices with their "state-sponsored" cash reserves, according to the head of Spain's top tier.

Javier Tebas, the outspoken president of La Liga, was critical of a lack of regulation from Uefa, which he also denounced over proposals which could severely limit entrance criteria to the Champions League to create billions more pounds for Europe's biggest clubs.

Tebas has been a long-standing critic of City, owned by Abu Dhabi's Sheik Mansour, and has previously expressed doubts over whether the Premier League champions or Paris St-Germain would face sanctions because of a tangled web of financial relationships with Europe's governing body. Both City, who are facing a looming one-year ban over an alleged £60million deception, and PSG deny wrong-doing over financial fair play.

"The problem with PSG and City is they’re state-run clubs: one off petrol-money, one off gas," Tebas said. "The damage happening on Euro football is massive because they are inflating the market so clubs have to pay ridiculous sums to keep their players."

He said he was in favour of a new system across Europe which might level the playing field. "What I'm in favour of regulating is sector that is not at [the] mercy of finances," he said. "Any money that is generated outside this sector forms this unbridgeable gap."