However, Athole Still insisted that contrary to reports there had been no contact with the club or potential buyer Thaksin Shinawatra.

Former England coach Eriksson is believed to be in the running to replace Stuart Pearce, who was dismissed at the end of the season after a disappointing campaign.

It is understood that City suitor Shinawatra has not yet decided on a manager should his takeover come to fruition.

According to reports the former Thai prime minister's £120million bid for the club is imminent.

It is understood Shinawatra and his team are still looking at a number of managers and no decision has yet been made.

Blackburn's Mark Hughes and Sevilla's Juande Ramos are also being linked with the post.

Eriksson is keen to return to work after a year-long break and Still told Sky Sports News: "He is a top-class international coach who has done it for clubs in three different countries - and I'm sure he could do it with Manchester City.

"He'd be interested in a club like them but at the moment nothing is happening - that's the absolute truth.

"There has not been any kind of meeting or contact between Sven-Goran Eriksson, myself or anyone purporting to represent us with either Thaksin Shinawatra himself or any of his representatives, or anyone purporting to be.

"It's just nonsense and I haven't the vaguest idea where these stories come from - but I can tell you categorically it is absolutely untrue.

"There has been no contact whatsoever and to say there have been meetings is rubbish.

"I don't believe it's coming from Manchester City, it's certainly not coming from us and I can't see why it would be coming from Shinawatra.

"Someone's seen a whiff of a rumour and given it arms and legs. It's laughable."

Meanwhile, captain Richard Dunne has assured City fans he is staying put with the Blues, despite summer transfer speculation linking the 27-year-old with a move.

But he told his club's official website, www.mcfc.co.uk: "I'm sure if I asked my agent to tell the papers that I wanted to move for £20million, they'd run the story.

"But I've always been very happy here, and I'm enjoying my life, so why would I want to go anywhere else?"