According to the US daily newspaper, “two people involved in the process” have confirmed that UEFA investigators have recommended Milan be excluded from European competition for violating Financial Fair Play rules.

UEFA announced last week that the seven-time European champions had failed to convince officials they are financially sound and referred the case to the adjudicatory chamber of its financial control unit to recommend an appropriate punishment.

A decision is expected next week, and according to the New York Times, investigators “have recommended excluding .. AC Milan from continental competition”.

UEFA are concerned over AC Milan’s stability after it was purchased by Chinese businessman Li Yonghong from Silvio Berlusconi for 740 million euros (RM3.45 billion) in April last year.

The club also spent more than 200 million euros (RM930 million) on new players in the summer and have a massive high interest loan of 300 million euros (RM1.4 billion) from US hedge fund Elliott Management.

Milan finished sixth in the Serie A last season and qualified for the second-tier Europa League for a second consecutive season missing out on the money-spinning Champions League.

If Milan were to be excluded, they would become the highest-profile club banished from Europe, following Spanish club Málaga, Serbia’s Red Star Belgrade, and Turkey’s Galatasaray, who were banned for a year in the past for failing to meet financial criteria.