Premier League teams want the book thrown at City if they are found guilty of most or all of the charges facing them, according to The Telegraph.
It is said that many teams believe a points deduction, even if it results in City being relegated, would be too lenient.
One senior figure has reportedly called for points deductions to be applied across multiple seasons if City are found to have broken the rules.
The independent panel would have no power to directly relegate City to a specific division because it has no jurisdiction over the EFL or National League.
The panel could, however, decide to expel City from the Premier League, an extreme punishment which would have significant repercussions.