Thaksin's accountants, who confirmed to the Stock Exchange today that they had made "an indicative proposal" to City, will complete due diligence at the club before advising their client whether to make a formal bid for the club.

Thaksin has been heavily linked with a near 100 million pounds move for the Eastlands outfit over the weekend and contact was finally made last night.

The statement to the Stock Exchange read: "Dr Thaksin Shinawatra notes certain recent press articles regarding the possibility of an offer being made for Manchester City.

"Dr Thaksin confirms that he and his advisers have made an indicative proposal that may or may not lead to an offer being made for the company," reported Manchester Evening News newspaper.

Sources close to Thaksin described his interest in the Blues as 'very, very serious' and indicated that the money for the deal was in place.

The same member of Thaksin's inner circle also disclosed that there was no intention to hire Allardyce as the next manager and that there had been no contact with him, the paper said.

Thaksin who was heavily linked to a move to takeover at Liverpool in 2004, has privately indicated that he would give the manager up to £50m to spend in the transfer market in a bid to make City a topsix side.

After failing in his efforts to buy Liverpool, Thaksin has not been put off getting involved in the Premiership and sees City as an ideal opportunity.

Given the reluctance among senior figures within the Blues hierarchy to negotiate with former player Ray Ranson who has also made his interest in the club clear  Shinawatra would appear well placed if he decides to pursue the matter.

Ranson, too, is promising a debt free future and plenty of money to invest in fresh talent.

There is still the possibility of a third party joining the race, with two different American groups weighing up a possible offer.

Thaksin, who has a home in London, is a former policeman who rose to political prominence in Thailand.

He and his family made a large chunk of their fortune from the sale of shares in one of Thailand's biggest telecom group, Shin Corp. The deal netted family members and others $1.9 billion.