Dunne has been fined two weeks' wages - approximately �20,000 - after turning up for training on Saturday in a dishevelled state.

City held a meeting on Wednesday morning involving Dunne, boss Kevin Keegan, club directors and Professional Footballers' Association chief Gordon Taylor.

And the club issued a statement on its website announcing that:

• A decision has been taken not to terminate Richard Dunne's contract with the Football Club.

• Manchester City have imposed the maximum fine of two weeks' wages.

• A specialist training programme will be carried out by the player.

Dunne has played only once this season, coming on as a substitute in the 3-0 defeat at Leeds United in the opening game.

The 22-year-old Irish international has previously been disciplined for late-night drinking sessions and was ordered to move from Liverpool by Keegan.

"Richard Dunne has accepted the seriousness of his situation having had similar disciplinary problems in the past," the club statement continued.

"The PFA will now work together with Manchester City Football Club to assist Richard Dunne during this training period and to help him work towards achieving the goals he has set himself."

City boss Kevin Keegan had cast doubt on the future of both Dunne and Danny Tiatto after Sunday's 2-2 draw with Blackburn.

Keegan branded Tiatto "a disgrace" for his wild tackle on David Thompson at Maine Road and promised to fine the player as much as he could.

"I just can't abide people doing things like that. I won't put up with that sort of thing at my club.

"I felt really let down by Danny and if one of my players had received a tackle like that I'd be livid," said Keegan.