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Manchester City have reached a settlement with the Premier League after the 10-time English champions commenced arbitration in relation to the organisation's Associated Party Transaction (APT) Rules. The Citizens launched a legal challenge earlier this year over rules that govern sponsorship deals.

Manchester City endured a tough season on the pitch last time around, finishing third in the Premier League and failing to win a trophy after losing to Crystal Palace in the FA Cup final. Their start to the current campaign has been underwhelming, with a 4-0 victory over Wolves on the opening weekend being followed by a 2-0 defeat to Tottenham and a 2-1 loss at Brighton.

City turned their attention to off-field matters on Monday afternoon as they put out an update regarding the arbitration.

And a joint statement between the club and the Premier League read: "The Premier League and Manchester City FC have reached a settlement in relation to the arbitration commenced by the club earlier this year concerning the Premier League's Associated Party Transaction (APT) Rules and as a result the parties have agreed to terminate the proceedings.

"This settlement brings an end to the dispute between the parties regarding the APT Rules. As part of the settlement, Manchester City accepts that the current APT Rules are valid and binding.

"It has been agreed that neither the Premier League nor the club will be making any further comment about the matter."

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Last autumn, the majority of clubs in the top flight voted to approve changes to the APTs, with City opposing the alterations.

The settlement is separate from the 115 charges that the City are facing.

The new rules were introduced to ensure clubs are not able to profit from above "fair market value" commercial deals with companies linked to their owners. And at the start of the year, City launched a legal challenge against the Premier League over the new regulations.

In a letter sent to clubs in February, Premier League chief executive Richard Masters wrote: "Manchester City FC seeks a declaration that the amendments approved by clubs in November (and therefore the current APT rules in force) are unlawful and void.

"The Premier League remains strongly of the view that the amendments passed in November were lawful and the APT rules comply with all competition law requirements.

"We consider that the new arbitration must be resolved as soon as possible and, to that end, have agreed that the same tribunal should be appointed to hear the new case. The parties are currently corresponding in relation to further directions.

"The APT rules remain in full force and effect and clubs remain required to comply with all aspects of the system."

City and their Premier League rivals are currently enjoying a break from action during the international break. But Guardiola's team will return to the pitch on Sunday when they host Manchester United in a huge derby.