A European politicians’ advisory group wants UEFA to stop clubs like Manchester City receiving “improper” sponsor deals from their owners.

A Council of Europe sports governance report released on Wednesday also urged banning “state aid” for clubs, singling out Real Madrid’s deal to sell selling training fields to city authorities.

“Care will have to be taken to prevent any circumvention of (UEFA’s) financial fair play rules in this way,” said the 47-nation Council’s culture committee.

The report points to the Abu Dhabi royal family’s ownership of Man City and the Etihad airline, which have “a contract estimated at STG400 million ($A598.89 million).

“In order to avoid improper transactions of this kind, UEFA should prohibit clubs from sponsoring themselves or using associated bodies to do so,” the report said.

UEFA was also urged to “monitor the ‘purchases’ of sponsors, who should not over pay for the rights they acquire.”

European football’s governing body is already committed to asses the “fair value” of commercial deals as part of the new financial rules, which came into effect last June.

The rules seek to ensure that clubs stop recklessly running up debts to chase success, and spend only what they earn from football business before entering UEFA’s Champions League or Europa League competitions.

The Council panel also expressed concern at clubs gaining “undue advantage” by banking public funds.

“For example, in the early 2000s Real Madrid was able to sell its training ground back to the city for more than (euro) 400 million ($525 million),” the report said. “There is a need for strict application of the ban on state aid for professional sports companies.”

The recommendations will be debated when politicians meet in an April 25 session at Strasbourg, France.