ENGLISH PREMIER LEAGUE:SVEN-GORAN Eriksson could be handed significant transfer funds if Thaksin Shinawatra is successful in clearing his name when he returns to Thailand tomorrow to face allegations of multi-million-euro fraud.

The former Thai prime minister is preparing to fly from Hong Kong tonight after taking the unexpected decision to return to his native country for the first time since taking over Manchester City last summer.

He expects to be arrested and bailed but, after several weeks of private bargaining, he is confident the ruling PPP party will subsequently clear him and he will then attempt to regain control of the €1 billion worth of assets that were seized and frozen last year. The implications for City are enormous because, if all goes according to plan, Thaksin will redirect some of the money to make them one of the most financially powerful clubs in Europe.

Eriksson will then be in charge of an extensive recruitment programme to ensure City are in a better position to qualify for the Champions League during his second year in charge. The team are currently eighth in the Premier League, their lowest position of the season, six points off fourth place after losing 2-0 at home to Everton on Monday.

Thaksin was overthrown by a military junta in 2006 and has since been living as an exile in London, but his prospects of a return to Thailand were raised at the turn of the year when the PPP was elected. The party is known to be sympathetic to him even though during his time in government he was frequently challenged with allegations of corruption, dictatorship, tax evasion and human-rights offences.

Thaksin has been described by Human Rights Watch as a "human-rights abuser of the worst kind" but he denies any wrongdoing and has always stated that he would return to Thailand when it was safe to do so.

Thaksin firmly believes that his enemies in Thailand are no longer in a position of power and there is no sense of apprehension at City that his decision could result in him being imprisoned. Thaksin, quite simply, would not be returning if he had not been given categorical assurances.

Eriksson, in turn, could have more transfer money at his disposal than any other club in Europe but would also be under added pressure to end the club's 32-year wait for a trophy.

• Guardian Service