With his plan to buy Man-chester City football club likely to be crowned at any moment, former prime minister Thaksin Shina-watra could yet hit a snag at the Bank of Thailand in getting the funds, an informed observer said yesterday.

The central bank, when Pridiyathorn Devakula was its governor, had looked askance at the Thaksin government's plan to bid for Liverpool Football Club, fearing the investment involving public money might turn sour, financial sources said.

"[Thaksin] has to prove that purchasing Manchester City is a rational business deal that is beneficial to the country," the observer said.

Several British media yesterday reported that Thaksin is on the verge of a £100 million (Bt7 billion) bid for Manchester City, which ended the last season at 14th on the Premier League Table.

The People says City officials are expecting a positive response from the billionaire Thai businessman this week when due diligence is finished.

According to central bank regulations, a Thai investor wishing to take out more than US$50 million (Bt1.7 billion) to invest in an overseas business must seek prior approval from the central bank, which will consider the investment proposal on an individual basis.

Thaksin is desperate to become a Premiership club owner after failing to buy Liverpool two years ago, reported Tribalfootball.com.

Guardian Unlimited online reported that the sacking of Stuart Pearce as Manchester City's manager will usher in a multi-million-pound revolution that will see Thaksin seize control of the club and a replacement manager appointed from abroad.

While Pearce was packing his bags, Thaksin was secretly visiting the stadium for the first time and has made it clear he does not want to appoint another British manager.

Thaksin's takeover bid has progressed more quickly than had been anticipated and there could be a formal announcement about the next stage of the process within 48 hours.

Gerard Houllier, the former Liverpool manager now in charge of Lyon, will be among those considered to replace Pearce, along with PSV manager Ronald Koeman and former Chelsea manager Claudio Ranieri. Sven-Goran Eriksson has been discounted.

The Guardian reported it was clear Thaksin, who on Monday was given a VIP tour of the City of Manchester Stadium, and his international team of advisers were consulted about Pearce's sacking in advance.

City's chief executive, Alistair Mackintosh, and chairman, John Wardle, had decided several weeks ago that Pearce would have to

go. Thaksin, who will retain Mackintosh in his present position, took advice from his English representatives and agreed.

Pearce was informed of his fate at a lunchtime meeting with Mack-intosh and Wardle on Monday but he had been aware the news was coming for several days. His intention is to get another job as quickly as possible, ideally in the south to be nearer his family home, but his reputation has been tarnished after an arduous season in which City finished only four points above the relegation zone.

Thaksin, currently in a period of due diligence, has a personal fortune estimated at around £2 billion and will make significant funds available for new players, possibly as much as £50 million. If everything goes according to plan, his financial muscle could also be critical in terms of hiring a manager who would normally be seen as out of the club's reach, in terms of both money and ambition.

However, the Thai's approach does not come without baggage. Human rights campaigners have accused Thaksin's administration of various offences, especially in relation to a hard-line anti-drugs campaign. The pressure group Human Rights Watch claims this led to more than 2,000 extra-judicial killings in Thailand in 2003.

The following year Thaksin launched a bid to buy Liverpool but the deal collapsed amid suspicions about his motives and funding. Eight months ago he was overthrown by a military junta and warned against returning to Thailand. He owns several properties, including one near London.

If the deal is closed it will put City on a financial level that has seemed unimaginable during the Pearce era. The former England captain has had to work to a tight budget since replacing Kevin Keegan in March 2005 and his lack of success in the transfer market - most notably, £6 million for Georgios Samaras - was key to his departure. Pearce, quite simply, was not trusted to spend Thaksin's money.

The club needs strengthening in defence, midfield and particularly attack, having not scored at home since January 1. They are resigned to losing Sylvain Distin on a free transfer this summer. Joey Barton will be another one to leave, though City have postponed a disciplinary hearing into Barton's training-ground attack on Ousmane Dabo that was due to be held yesterday. The club intended to announce several more departures yesterday.