UEFA have informed Manchester United that they have until Monday to find a resolution that will allow them play in the Europa League next season, the UK Telegraph reports.
This is because United's co-owner, Sir Jam Ratcliffe, also owns Nice who qualified for the same competition.
The Red Devils qualified, thanks to winning the FA Cup final against Manchester City, despite finishing in eighth place in the Premier League.
Ratcliffe's ownership of two other teams - French side Nice and Swiss club Lausanne - puts him in contravention of UEFA's rules.
European football's governing body states that the same owner or entity is not permitted to have "decisive influence" across two or more clubs competing in the same competition.
Nice finished fifth in Ligue 1 this season and because they finished higher in their league than United, it is the Red Devils who could be forced to drop into the Europa Conference League, unless a solution is found.
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