Manchester City have been cleared to name just five homegrown players in their Champions League squad next season.
It had been thought that the Blues would be forced to name eight homegrown players in their 21-man European squad next season.
Pressure from the players' union FIFPro has forced UEFA to agree to water down its sanctions imposed against City and Paris St Germain for breaching financial fair play rules.
The news was confirmed by UEFA's general secretary Gianni Infantino on Wednesday and could have a significant impact on City's transfer plans.
