Premier League champions Manchester City have avoided a transfer ban after an investigation cleared them of wrongdoing in the Benjamin Garre case.

The youngster's former club Velez Sarsfield filed a complaint with the Court of Arbitration for Sport (CAS), accusing the Sky Blues of breaching transfer regulations when they signed him almost two years ago.

The Argentine club claimed that City acted unethically by approaching Garre when he was just 15 years old, before signing him days ahead of his 16th birthday.

Under FIFA regulations, the transfer of junior players between two clubs in the European Union is permitted, and the case was initially dismissed as Garre holds an Italian passport.

The CAS has upheld this ruling, meaning that City have escaped a potential transfer ban for the next two windows, although Velez Sarsfield have the chance to appeal against the decision.