Manchester City are set to renew their efforts to sign Southampton stars Adam Lallana and Luke Shaw, reports the Daily Express.
The Citizens are facing up to a £50 million fine from Uefa for breaking Financial Fair Play regulations and will also be able to pick a squad of just 21 players in the Champions League next season.
Officials at the Etihad are believed to be considering an appeal against the regulations but Manuel Pellegrini is already changing his transfer plans.
Because Manchester City will still have to include eight homegrown players in their A squad, Pellegrini is preparing to sign some of the best English players around instead of foreign talent.
That means bids for Southampton stars Adan Lallana and Luke Shaw are likely, which is bad news for Manchester United.
Manchester United looked firm favourites to sign the pair, especially Shaw, with a double £50m deal reportedly in the offing.
Shaw is seen as the perfect long-term replacement to Patrice Evra while Lallana was going to provide some much needed quality on the wings at Old Trafford.
However, despite having to curb their spending, City are still ready to splash the cash and are ready to match United in their bid for the English pair.
As City can offer Champions League football, it will inevitably leave officials at Old Trafford fearful that they could lose two of their main targets to their local rivals, who have already underlined their dominance this season.
The Citizens had planned to sign Porto duo Eliaquim Mangala and Fernando but must now reconsider because of the regulations.
With Joleon Lescott, Gareth Barry, Micah Richards and Jack Rodwell all expected to depart, it may leave City with just three homegrown players in the form of Joe Hart, James Milner and Gael Clichy.