Loans have been the mainstay of the club for the last three seasons and if the Football League are unable to get a special dispensation from FIFA, then City will have to compete for players during the transfer windows in August and January.
City Chief Executive Graham Hover said: "Life very difficult for clubs with limited resources who can only afford to have small squads and give those with larger squads preferential treatment.
"Bigger clubs with bigger squads would be able to fall back on other players in the event of injuries and suspensions so it will not be a great thing as far as we are concerned.
"It is fine coming out with new rules but people have got to understand the consequences faced by smaller clubs. "We don't know the full details yet but if what we are led to believe is true, unless there is a special dispensation from FIFA, we will be falling in line with the Premier League clubs and operate within two transfer windows."
Continuing,Hover said: "We have made use of the loan system in the past with varying degrees of success and the one benefit will be that at least we will get a player for a five or 12 month period rather than just a month.
"Short term loans don't always work because players don't always have the same attitude as they would if they were staying at a club longer."