The discussions reportedly centred on a substantial financial payment that could have reduced the risk of more severe sporting sanctions, including the stripping of titles or expulsion from the top flight.
People familiar with the matter told Bloomberg that the negotiations took place before the independent commission's verdict became public. The discussions were described as early-stage and quickly collapsed, with City continuing to maintain their innocence.
A settlement would not necessarily have amounted to an admission of guilt. However, any agreement would have been controversial among rival clubs, particularly those who believe City's financial conduct affected the outcome of past Premier League title races.
The commission found that City had used sham commercial contracts and agreements to inflate revenue and reduce costs during the period from 2009 to 2018. The club has appealed the findings and continues to dispute the ruling.
The reported talks offer a new detail in a case that has placed the club's finances and future under intense scrutiny. A financial agreement could potentially have limited the scope of the dispute, but it would not necessarily have resolved every issue raised by the investigation.
Manchester City's public position remains that they expect to overturn the verdict. Manager Enzo Maresca reiterated his confidence in the club when questioned before the team's return to action.
“I completely trust the club,” Maresca said. “I trust the people and it's one of the reasons I joined the club. There isn't another club in the world where I would like to be.”
Asked whether he would have accepted the job had he known the outcome of the case, he replied: “One hundred per cent. I know the organisation from years ago.
“I know how serious they are and they do the right things. I want to speak about this when we win the appeal.”
Maresca also resisted speculation about possible sanctions, arguing that the appeal must be respected before conclusions are drawn about the club's future.
“We're predicting the future,” he said. “I'm worried about tomorrow, two days. It's fair from my point of view to respect the process.”
The manager said he understood the seriousness of the situation but was encouraged by the atmosphere inside the club after the squad returned to training.
“We completely understand the seriousness of the situation. We understand it but it's our duty to control the noise. You cannot avoid it,” he said.
“Viewing the environment inside the building the last two days, I'm not worried at all. It's nice. We're top of the league at the moment. The players have all the reason to be happy and excited.”
Bloomberg reported that representatives for both City and the Premier League declined to comment on the settlement discussions. The club's appeal remains the next major stage in a dispute that could have significant consequences for English football.