UEFA announced in a statement that City had committed "serious breaches" of the rules while the Premier League club swiftly said on their website that they will appeal the decision to the Lausanne-based Court of Arbitration for Sport (CAS).
Manchester City showed that their weekend derby loss was a blip as Kevin de Bruyne and Riyad Mahrez both scored twice in a 5-2 win over Southampton
City, who have dished out a string of maulings in a stellar league campaign, found the Championship side a tough nut to crack and had to wait until the 92nd minute to grab the winner when Argentine substitute Aguero darted in to head home.
Sheffield United's David McGoldrick scored twice as they stunned Chelsea with a 3-0 win at Bramall Lane on Saturday, loosening the visitors' grip on a Premier League top-four place. Raheem Sterling struck a hat-trick as Manchester City crushed Brighton 5-0 at the AmEx Stadium in the Premier League on Saturday.
Rui Patricio saved three penalties as Wolverhampton Wanderers defeated English Premier League champions Manchester City to claim the Premier League Asia Trophy 3-2 in a penalty shootout.
Bayern, who won the Champions League in 2013, have yet to hit top form this season, with many players tired after the World Cup and others, including Thiago Alcantara, Bastian Schweinsteiger and Rafinha, out injured.
City are looking to retain the title they won in record-breaking fashion last year and secure their fourth Premier League crown in eight years.
Defeat left United in sixth spot, three points behind fourth-placed Chelsea, who they face this weekend.
Aston Villa and Sheffield United players and referee Michael Oliver took a knee at kickoff in support of the "Black Lives Matter" movement as the Premier League season restarted
Manchester City struck an early blow for the forthcoming Premier League campaign as they beat Liverpool on penalties to win the Community Shield at Wembley on Sunday after an absorbing contest had finished 1-1.
The best way for City to defend in the past has been to attack. They have no reason to change that, says Vincent Kompany
Diaz double puts City in quarters, De Bruyne injured
Several Manchester United players are in the 'red zone' according to manager Louis van Gaal as he weighs up his options for Saturday's FA Cup third round tie at home to Sheffield United. A hectic holiday programme, including four games in 15 days, has taken its toll on United's squad and Van Gaal fears that many of his over-stretched players risk injury or burnout. Defender Phil Jones is ruled out through injury while winger Ashley Young might not be risked with United set to face a Premier League clash at Newcastle United three days after playing third tier Sheffield United.
Liverpool face Spurs in the game of the weekend, a day after title rivals Manchester City travel to struggling Fulham.
City's Aguero doubtful starter for Watford trip
"First we have to play football and see what happens. Maybe we can then score a goal and create an atmosphere in the stadium."
Juergen Klopp has said his Liverpool team must be prepared to play ugly football to secure Champions League qualification following the injury to productive forward Sadio Mane ahead of Wednesday's Premier League clash against Bournemouth.
Images from Saturday's Premier League matches.
Seconds after Bournemouth had a chance to snatch victory the ball went back down the other end and Sterling's deflected shot looped past helpless Bournemouth keeper Asmir Begovic.
News of all that transpired on and off the football field.
Phil Foden and Riyad Mahrez scored two goals apiece as the hosts showed their impressive strength
The enduring image of Luis Enrique for many soccer fans is the Spain player with blood gushing from his nose after a vicious elbow from Italy defender Mauro Tassotti during the 1994 World Cup quarter-final in Boston.
Liverpool laboured to a 2-0 win over Denmark's Midtjylland on Tuesday as a goal from Diogo Jota and a Mohamed Salah penalty secured a hard-fought Champions League Group D victory at Anfield.
Liverpool's Champions League winning trio of Mohamed Salah, Virgil van Dijk and Sadio Mane joined regulars Cristiano Ronaldo and Lionel Messi on the shortlist for The Best FIFA Men's player award
Barcelona won their 26th King's Cup when two goals from Pedro and one from Lionel Messi gave them a 3-0 victory over Athletic Bilbao in coach Pep Guardiola's final match in charge on Friday.
Real Madrid forward Vinicius Jr. score twice as his side punished a sloppy Liverpool to win 3-1, while Manchester City beat Borussia Dortmund 2-1 in Tuesday's Champions League quarter-final first leg.
Images from the UEFA Champions League matches played on Wednesday night.
Their work in the transfer market has also added to the positivity around the club after German manager Juergen Klopp made some major moves that have clearly strengthened his squad.
Images from the English Premier League matches played on Sunday night
Images from the English Premier League matches played on Sunday.
Pep Guardiola says Manchester City are not yet ready to compete with Europe's elite but his side will be confident of opening their Champions League campaign with victory over Borussia Moenchengladbach on Tuesday.
Bayer Leverkusen hold a physical advantage over holders Barcelona and will be a tough nut to crack in their Champions League last 16 tie, Barca coach Pep Guardiola said on Monday.
Manchester United's troubled season hit a new low on Saturday as Jose Mourinho saw his gamble on introducing a new tactical system backfire with an insipid 3-1 defeat to West Ham United in the Premier League.
Manchester City endured some anxious moments but escaped from fourth-tier Newport County with their FA Cup hopes intact as Phil Foden scored twice in an ultimately comfortable 4-1 fifth-round victory on Saturday.
Eight wins and a draw in their last nine games had seen Leicester emerge as the closest pursuers of runaway leaders Liverpool but they went down 3-1 at the Etihad despite taking an early lead through Jamie Vardy. Images from the English Premier League matches played on Saturday.
Sunderland manager David Moyes says he is under pressure to turn around their poor Premier League form, but it is no different for coaches at the other end of the table.
Manchester United manager Jose Mourinho is more worried about avoiding injuries on a poor pitch in Beijing than he is about winning their pre-season derby against Manchester City in the International Champions Cup (ICC). Mourinho criticised the conditions at the Bird's Nest stadium where torrential rain is forecast for next 24 hours. "I think Beijing is unlucky because the pitch is very wet," the manager told reporters on Sunday.
IMAGES from the English Premier League match played between Everton and Manchester City on Wednesday
Bayern Munich's long-time team doctor Hans-Wilhelm Mueller-Wohlfahrt has surprisingly resigned.
