The Citizens barely topped Paris Saint-Germain, with the French side shelling out nearly €400m on players in the most recent transfer window.
Manchester City have put together the costliest squad in football history in terms of transfer fees, according to a CIES Football Observatory study.
The Blues have spent €853 million in transfer fees on their current squad, even putting them ahead of big-spenders Paris Saint-Germain, who come in a close second at €850m.
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The past off-season saw yet another massive outlay of cash by City, who spent €242m on players including Benjamin Mendy, Kyle Walker, Bernardo Silva, Ederson and Danilo.
PSG, of course, spent even more in the most recent close-season. The French side dropped a whopping €395m in the lead-up to 2017-18, including €222m on Neymar and €180m on Kylian Mbappe.
Manchester United come in third, with English sides making up six of the top 10 costliest squads.
Impressively, La Liga and Champions League winners Real Madrid come in sixth, but have actually net €138m in their transfer business in the past 12 months.