Ousted premier Thaksin Shinawatra's proposed £90 million (Bt5.7 billion) takeover of Manchester City faces another obstacle after it emerged that the Premier League would implement "fit-and-proper-persons" regulations if he was convicted of fraud in Thailand, The Guardian website reported yesterday.

The British daily quoted a source close to Thaksin admitting the deal was "on the ropes".

Every board member or controlling shareholder of a Premier League club must sign a "director's declaration" stating whether he or she has convictions for fraud, theft, corruption or associated offences.

Clubs with a director who has such convictions are barred from competing in the League until the individual concerned severs those links with the club.

The daily said Thaksin had been granted 60 days to present evidence to an anti-corruption committee in Thailand to prove that his wealth - principally generated from the Bt73-billion tax-free sale to the Singaporean investment group Temasek of his family's stake in Shin Corp telecom group - had been earned legally.

The committee will then refer its findings to the courts.

The Premier League introduced a "fit and proper persons test" in August 2004. Chief executive Richard Scudamore said at the time: "The fit and proper persons test puts

football club directors in the Premier League under a far more rigorous test than ordinary company law."

The fact that Thaksin might already have completed his purchase of City would not prevent "retrospective action" by the Premier League, it said.

The Guardian said Thaksin and his representatives spent yesterday in a series of top-level meetings to discuss the freezing of his bank balances and other financial assets.

It quoted his lawyer, Michael Goldberg, saying the 57-year-old would "vigorously evaluate all international options to protect his rights and interests".

"The junta is committed to finding means to circumvent any rule of law to persecute Dr Thaksin, his family, his friends and his business activities," Goldberg continued.

"The junta's attacks on Dr Thaksin amount to an arbitrary interference with his privacy and his family, his private property, his business interests as well as his honour and reputation."

Thaksin has been travelling to cities in Asia, Europe and the UK in the nine months since the coup and has attacked the junta in interviews and speeches.

The implications for Manchester City are enormous. Club chairman, John Wardle convened an emergency board meeting yesterday. The club's lawyers have asked Thaksin for written confirmation that he is in a position to proceed and Manchester City Council, which owns the stadium, has become involved, The Guardian said.

"The perception of the club is one of drift," said the council leader, Sir Richard Leese. "The board ought to put a deadline on the takeover issue. It is reaching a stage where people should put up or shut up."