The club are seeking new investors overseas, with City chief executive Alistair Mackintosh visiting China, Russia and the United States in an attempt to raise funds.
Mackintosh said: "We've not gone for any high-interest, high-risk leasing deals on players. The debt is long-term and secured on the stadium."
City insist the future is bright even though it is believed they have debts of £70m, £20m more than recorded in the club's latest accounts.
A City spokesman said: "It's fanciful to suggest that we are heading the same way as Leeds.
"It's just not true. There is no foundation to these reports and it looks like there is mischief-making at work."
