Manchester City have rejected speculation they are in discussions to buy a new MLS franchise.

City, who on Friday reported annual losses of £97.9million and increased turnover of £231.1million, were said to be on the brink of being awarded a franchise that would be based in the Queens district of New York .

It had been suggested David Beckham had been approached to be part of the scheme, which was to be named New York City Football Club and cost Blues owner Sheikh Mansour £100million.

However, Manchester City officials have today distanced themselves from the talk.

"Manchester City are not buying an MLS club," said City in a short statement.

Sheikh Mansour has used his involvement with City, on which he has now lavished well in excess of £1billion, to raise the profile of Abu Dhabi.

It was suggested an involvement within the MLS would add to the work that has taken place turning City from a mid-ranking Premier League club into last season's champions.

A second MLS franchise in New York is set to be based in Queens, close to the site of Flushing Meadow, which currently hosts the US tennis open.