City confirmed they received an offer from Ranson at the beginning of March to which they gave a prompt response.

Ranson, a former City player, said on Tuesday that he was considering making a formal bid for the club.

But a City statement said: "Ray Ranson's indicative proposals contain a number of material conditions that the board do not believe can be fulfilled."

It has been reported that Ranson's offer is worth �90m and includes the repayment of �20m in loans owed to chairman John Wardle and David Makin, plus a summer transfer kitty of �20m.

However, City insist no such deal has been suggested.

"The board can confirm it received, and responded promptly to, a highly conditional indicative proposal from Ray Ranson and his advisers on 12 March 2007," said City's statement.

We are keen to conclude a deal as soon as possible Ray Ranson

"For the avoidance of doubt, since 12 March 2007, contrary to media speculation, neither the purported '�90m bid' nor further proposals of any sort have been received by the company or its advisers from Ray Ranson.

"The board will continue to consider all indicative proposals and offers from potential offers including Ray Ranson and, as announced on 24 April 2007, continues in preliminary discussions with interested parties.

"These discussions may or may not lead to an offer being made for the company."

Ranson revealed that he has been considering making a bid for City for some time and stated that he first contacted the club two years ago.

He told the Manchester Evening News: "This bid is not a spur-of-the-moment thing but has been a long-term ambition of mine since my playing days.

"I first contacted City in 2004 long before I was associated with a move for Aston Villa. Now I have the financial backing to be successful."

Ranson, who is believed to be competing with former Thailand Prime Minister Thaksin Shinawatra, plus an American consortium, in the battle to take over at City, added: "City has huge potential on and off the pitch.

"I believe I am in a unique position to drive that forward having played the game at the top level and then never left it.

"My business is football. The timing of any takeover has to be right. We are keen to conclude a deal as soon as possible."