It is thought this would limit clubs' abilities to stockpile players that could later be sold for profit but still allow the loan system to be used for player development.

City would probably have to cut drastically the number of players on their books should this be introduced but Guardiola claims that would not be an issue.

The City boss said: "We are going to adapt to the rules. The new rules are coming. We're going to see the situation about loan players and see what we can do.

"If we cannot loan them they are going to come back here. If we don't believe they are going to play, if we cannot loan them, we are going to sell them. It's simple.

"We're going to see before they take the players where they are going to play and if it is not possible to loan them we are not going to buy them."

Guardiola feels the loan system is important because he does not think the Under-23 competition in England is of a sufficient standard to prepare players for the Premier League.

"It's not good for me," said the Spaniard, speaking at a press conference to preview his side's clash with Bournemouth on Saturday.

"Loan players are in good leagues. To then come here to play in front of 10 people is not good for their development."

City have been forced to loan out £10million signing Douglas Luiz, the Brazilian midfielder, for the past two seasons due to work permit issues.

In this case, City are pleased to have had the option of loaning the 20-year-old out.

Guardiola said: "There's no way Luiz comes back here to the second team. He would have been with us to make an alternative for Fernandinho but we couldn't get a work permit.

"Now he's playing for Girona and playing in the Camp Nou, in the Bernabeu. It would make no sense to come here to the second team. It would not help the young players in that way."

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