Manchester City are reportedly set to sign a mammoth sponsorship deal with Etihad Airways after backing down in their latest legal battle with the Premier League.

City had been challenging the Premier League amendments to the Associated Party Transactions (APT), but have now agreed not to take their arguments to a tribunal.

According to The Times , the settlement will clear the way for City to renew their sponsorship deal with Etihad Airways, the state-owned national airline of the United Arab Emirates (UAE).

The Premier League has previously blocked the deal, believed to be worth hundreds of millions of pounds, on the grounds that it does not represent a “fair market value” deal for Man City, a key consideration under APT.

But the club, which is owned by the UAE’s Sheikh Mansour b

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