City tighten purse strings to comply with fair play rules. Balotelli sale may be a way to raise funds for signings.
Roberto Mancini retains the support of Manchester City's Abu Dhabi owners following the club's second successive Champions League group stage exit, but the Italian will not be given new funds to bolster his squad in the January transfer window.
City's attempts to reduce their transfer spending and move towards compliance with Uefa's Financial Fair Play regulations ensures there will be no major arrivals in the new year.
And plans are already being made for next summer's transfer window to follow a similarly prudent path, with senior figures ruling out moves for Roma's Daniele de Rossi and Atletico Madrid forward Radamel Falcao, despite Mancini admiring both.
Mancini is understood to accept the need for City to move towards a more sustainable approach. But while confirmation of the club's Champions League exit following Wednesday's draw with Real Madrid was a major disappointment for Mancini and his bosses, the 47 year-old's insistence that he does not fear for his job is well placed. Although Chelsea manager Roberto Di Matteo was sacked by the club's owner, Roman Abramovich, on Wednesday following the European champions' 3-0 defeat against Juventus in Turin the previous evening, there are no moves within the Etihad Stadium for Mancini's position to be reviewed.
City lead the Premier League with the only unbeaten record in the division, and Mancini signed a new five-year contract following City's title success last season, so owner Sheikh Mansour bin Zayed al Nahyan and his senior executives at the club remain determined to keep faith with the former Inter Milan coach.
While Mancini has failed to meet Abu Dhabi's - and his own - target of progression to the last 16 of the Champions League, City's recent return to the summit of the Premier League has softened the blow of their European failings. And although Real Madrid coach Jose Mourinho appeared to stir things up after the draw at the Etihad which ended City's Champions League ambitions by claiming he would not survive such a failure at the Bernabeu, the Portuguese's remarks have done nothing to undermine Mancini's position.
Mancini had complained in the summer about the club's laboured player recruitment. He made it clear he was frustrated by City's failure to sign Robin van Persie, who instead chose to leave Arsenal for Manchester United, and he ended the club's pursuit of Eden Hazard because he felt the Belgian who eventually moved to Chelsea was over-priced.
Roma captain De Rossi, whose age (29) and salary demands do not fit City's recruitment, was another target, with Mancini identifying Benfica's Javi Garcia -- a deadline day signing -- as the alternative option.
The potential sale of the out of favour Mario Balotelli in January could release funds for an entry into the transfer market, particularly with Yaya Toure expected to be away for more than a month with Ivory Coast at the Africa Cup of Nations.
David Platt, City's assistant manager, who was sent off for dissent on Wednesday night, will have his case dealt with by Uefa next Tuesday.
City captain Vincent Kompany is a doubt for Sunday's trip to Chelsea with a knee injury sustained during the draw against Real Madrid.
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