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Pep Guardiola has the green light to continue his Manchester City revolution with ANOTHER big transfer spend next summer.

The Blues have chalked up record revenues and even posted a small profit, despite their £180million spending spree in the summer of 2016.

And that means that Guardiola will be given funds to improve the squad again after vowing to 'shake the team a little' next summer.

City have posted record revenues of £473.4million, up by 21 per cent on last year – and that means for the third year running they are in the black.

That was despite Guardiola's first big spend, which brought in John Stones , Leroy Sane , Gabriel Jesus , Ilkay Gundogan , Nolito and Claudio Bravo .

City are in pole position to add Arsenal's Alexis Sanchez to their squad and will be hunting a new centre-back – possibly two – as well as another left-back.

They will be in the market for a left-back in January and could even try to draft in a central defender if the right man is available.

Sanchez will be available on a free transfer, but is expected to come with a hefty wage – but the club has trimmed its wage bill to a decent 56 per cent of revenue, leaving room to accommodate the Chile international.

The club's annual report for 2016-17, released on Wednesday, shows the spending and wages is not making a hole in the club's finances, as it did in the first few years after Sheikh Mansour's takeover, and which led them into trouble under Uefa's financial fair play rules.

The Blues have exceeded that spending this summer with a world record £220million outlay but are comfortable they can cover the extra expense.

The profit is a tiny £1million, but the club has rejigged its reporting cycle to include the loss-making month of June – if it had not, the profit would have been around £10million.