The news comes just two days after City and Chelsea, as well as 10 other European clubs, announced they had formed a breakaway competition.
But things have changed dramatically after intense backlash from fans across the globe.
The report also states City and Chelsea were the last to sign the ESL proposal after fearing they would be left out.
Roman Abramovich and Chelsea's board made the decision after witnessing the negative reaction to the Super League.
Blues chairman Bruce Buck also met with the players, who expressed their fears over being banned from international competition.
In regards to Manchester City, the club confirmed late on Tuesday that they had "formally enacted the procedures to withdraw from the group developing plans for a European Super League."