City recorded a loss of �51.6 million ($85.5 million, 62.6 million euros) in the 2012-13 season, down from �97.9 million the previous year and �197.5 million in 2010-11.

Turnover reached a record high of �271 million, up from �231 million, and the 2012 English league champions have also paid off all their debts, which had reached �58 million a year ago.

The figures have left the club confident that they will break even as early as next season, enabling them to comply with European governing body UEFA's Financial Fair Play (FFP) rules.

"Growing revenues and controlled expenses are bringing the club to break-even in the immediate future and profitability thereafter," said chief executive Ferran Soriano.

City will enjoy extra income this season from new commercial contracts and lucrative new Premier League television rights deals, as well as their successful qualification for the Champions League knockout phase.

In City's annual report, chairman Khaldoon Al Mubarak said that there was a "renewed sense of confidence for the future" within the club.

Under FFP, clubs' losses must not exceed a limit of �37 million for the 2013-14 season, but money spent on facilities and youth development is taken into account when each team's losses are calculated.

Clubs will face fines, the withholding of prize money, transfer bans and even exclusion from European competitions if they fail to meet the regulations.