Premier League giants Manchester City and Manchester United boast the most two most expensive squads in European football, according to a latest study by Swiss-based independent research group, CIES Football Observatory.

City continues to play the costliest squad among all clubs in Europe's top five leagues, followed by its cross-town rival, United.

The annual study by CIES crunches numbers across Europe's elite teams to calculate the cost of every squad based on transfer fees, including all possible add-ons.

This year's report revealed City has committed an estimated 1.08 billion euros ($1.28 billion) on their current crop of players, with United close behind in second on 1.02 billion euros.

French powerhouse Paris Saint-Germain is third with spending worth 939 million euros, while the top five is rounded off by Real Madrid on 787 million euros and Chelsea on 780 million euros.

Liverpool (672 million euros) and Arsenal (630 million euros) are two other English sides in the top 10. Barcelona finds itself in ninth with a squad valued at 578 million euros.