MANCHESTER, August 6, 2008 (AFP) - Former Thai prime minister Thaksin Shinawatra could be forced to sell Manchester City due to financial problems, according to a report on Wednesday.

Thaksin is fighting corruption allegations in Thailand and has reportedly had around one billion pounds (2 billion US dollars) of assets frozen, making it impossible for him to release the funds he needs to turn City into a major force in the Premier League.

Last week Thaksin's wife Pojaman was sentenced to three years in prison on a variety of corruption charges, although she has since been released on bail, and the City owner is facing similar charges.

The legal battle has had an impact on City's progress in the transfer market and, according to a report in the Sun newspaper, Thaksin is now looking for new investors to provide manager Mark Hughes with funds and could even consider selling the Premier League club he bought 14 months ago.