Manchester City have avoided a transfer ban after winning their case against Velez Sarsfield at the Court of Arbitration for Sport, Sky Sports News understands.
According to the Daily Mail, the Citizens could find themselves in trouble following an apparent breach of transfer regulations.
The Telegraph's report reads: "Fifa had upheld City's argument that Garre was free to join them after his 16th birthday because he holds an Italian passport but Velez alleged that Federation Internationale de Football Association rules only allow players under 18 to move between clubs in European countries".
Velez have claimed that the English club contacted the player when he was just 15 years old, which is illegal and has got top European sides in trouble in the past.
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However, City argued that, because Garre holds an Italian passport, he was free to leave Argentina after his 16th birthday and were initially supported by Federation Internationale de Football Association before Velez took the case to the Court of Arbitration for Sport (CAS). Barcelona, Atletico Madrid and Real Madrid have all been subjected to such bans in recent seasons after being found guilty of breaching the rules surrounding the signing of worldwide players under 18.
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But City manager Pep Guardiola is now free to continue his transfer plans as he looks to strengthen his squad once the transfer window reopens at the end of the season.
That is why a court case that was heard in July past year, with a verdict due by the end of September, has been delayed.
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The new Premier League Champions could have suffered two-window transfer ban if found guilty, but Manchester City was cleared from the allegations, official confirmation from CAS is expected to arrive shortly, and Velez will have the right to appeal.
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Garre, 17, is yet to make his City debut and the forward has been playing for their under-23 team, scoring his first goal against Rotherham last August.
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