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City's Champions League hopes next season have been given a boost after Uefa relaxed the terms of their squad restriction.

The Blues will only be able to name a 21-man squad for next season’s competition rather than the usual 25, as part of their punishment for breaches of financial fair play rules.

That led to fears that they would have to meet the strict criteria of including eight home-grown players in the squad.

That would have meant they could only include 13 foreign stars, and with 14 already on their books, and three more expected this summer, it would have left manager Manuel Pellegrini with a major headache.

Uefa have refused to reveal the detail of the make-up of the reduced squad and City say they have been instructed to stay tight-lipped.

But M.E.N. Sport understands that the Blues squeezed a concession out of Uefa and will be allowed 16 ‘free’ players and just five ‘home-grown’.

It explains why City have not made efforts to keep out-of-contract English players Joleon Lescott and Gareth Barry, while Micah Richards, Jack Rodwell and Scott Sinclair will leave.