The English champions were also accused of breaching UEFA’s club licensing regulations and have been fined £25m.
Manchester City have already indicated that they are going to appeal UEFA’s decision at the Court of Arbitration for Sport.
Tebas has been a vociferous advocate for the likes of Manchester City and Paris Saint Germain to fall prey to FFP rules in the past as a result of their spending power.
The 57-year-old took to social media to commend Europe’s football governing body for taking the initiative to hand Man City the ban.
“UEFA is finally taking decisive action,” Tebas said on his Twitter account.
“Enforcing the rules of financial fair play and punishing financial doping is essential for the future of football.
“We have been calling for severe action against Manchester City and Paris Saint Germain for years.
“Better late than never.”
Man City have been drawn to face Real Madrid in the round of 16 stage of the Champions League this season.
Should they fail with their appeal to have the ban overturned, Man City, who are currently second in the Premier League, will have their place in Europe taken by the fifth placed side if they finish in the top four.
