Manchester City have been reported to FIFA by Shakhtar Donetsk, who claim they are still owed money from the transfer of Brazilian playmaker Elano to Eastlands last summer.

FIFA confirmed last night that they are investigating a claim by the Ukrainian champions that City owe them 600,000 euros.

Blues in the red: Elano is the subject of a financial dispute between Manchester City and his former club Shakhtar Donetsk.

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The money is a `solidarity payment` on European transfers. It usually equates to five per cent of the total sum - in this case ?9.5m - and is distributed between clubs that played a part in the youth development of the player. Donetsk claim City have withheld the money and the case will now be heard by FIFA.

A spokesman for the world governing body said: `We can confirm Donetsk have lodged a claim with FIFA regarding this matter. As the relevant procedure will start in due course, we can`t provide further comments for the time being.`

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With City`s chairman and owner Thaksin Shinawatra having problems financing the Barclays Premier League club, this latest development is another damaging blow.

Last night City were not able to comment officially but sources claimed Donetsk`s complaint is unusual, given that it is normally the selling club who are responsible for making solidarity payments.

It is also understood City are six days late on the second of three regular payments to Donetsk for Elano. City have staggered payments over three years on the eight players bought by Sven Goran Eriksson last summer.

Reports in Ukraine suggest City are behind with this summer`s cash but have told Donetsk the instalment-about 3.1m pounds (84m)-will be paid in the next couple of days, an explanation the Ukrainians have accepted.

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