Premier League clubs voted on banning loan transfers between Clubs with shared owners on Tuesday with the voted split 13/7.
Manchester City and Chelsea were part of the clubs who voted against banning the loan deals between related clubs.
However, the law will not be implemented ahead of the January transfer window as 14 votes are needed to legitimise it.
According to The Times, the seven clubs who voted against the ban were Newcastle, Chelsea, City, Sheffield United, Everton, Wolves and Nottingham Forest.
Chelsea’s owners BlueCo acquired French side Strasbourg back in June, while Evangelos Marinakis owns both Forest and Greek giants Olympiakos.
Manchester City are the flagship team in the City Football Group that has stakes in many clubs around the world, as does Sheffield United’s owner, Saudi prince Abdullah bin Musaid Al Saud.