Manchester City Football Club (MCFC) has confirmed that it has signed a memorandum of understanding with the Abu Dhabi United Group (ADUG).

The deal, reported to have cost ADUG around £210m based on the club's value and outstanding debt, looks set to establish MCFC as one of the world's richest football clubs.

ADUG, led by Arab businessman Sulaiman al-Fahim, is said to be funded by members of the United Arab Emirates royal family. The group has taken over control from the previous owner, the former Thai prime minister, Thaksin Shinawatra, who paid £81.6m for the club in 2007.

A period of due diligence has now been entered according to MCFC, with a further statement to be issued by the club in due course.