The Mail on Sunday says the bulk of the spending will take place next summer and the club believe that no player will be considered out of their price range.
Eriksson will use his wealth of experience and knowledge of the world football scene in an attempt to make the City of Manchester Stadium dressing-room the most powerful in the Premier League.
The Swede intends to provide the kind of challenge to neighbours Manchester United that City fans have scarcely been able to dream about.
The initial January flurry, with at least three high-priced players coming in, will be to ensure European qualification next season.
"There is no doubt Mr Thaksin means business," said a source close to the club.
"He wants the best for the team and its supporters and he is prepared to throw in fortunes to get it."