Part of the ban – from 30 June 2018 – will only come into effect if the club reoffends in the next three years.
City were found to have approached the family of two young players who were registered with other clubs.
The ban applies to 10 to 18-year-olds registered with a Premier League or EFL club in the previous 18 months.
It follows a similar sanction for Liverpool, who in April were punished over a separate illegal approach.
Liverpool’s punishment related to their approach to a 12-year-old academy player at Stoke City in September last year.
It was reported in April that the Premier League was examining three signings by Manchester City’s academy, including an 11-year-old Everton midfielder and a 15-year-old from Wolverhampton Wanderers.
In each case, the academy player was conditionally registered with City while the Premier League’s investigation was ongoing.
As a result of the club’s breaches, the players’ registrations will be terminated, with no compensation rights retained by the club.
Premier League rules ban inducements from clubs to encourage a move.
City have declined to comment on the matter. It is understood they have promised to continue to pay the school fees of the children concerned throughout their education at comparable schools to the ones they would have gone to if they had stayed at the club.
They have also agreed to pay the relevant compensation for the players, which means they are free agents and can join any other club without it going to tribunal.
