Ivorian Bony joined in the January transfer window from Swansea City for a reported fee of 28 million pounds ($42.83 million) and his arrival meant his new club had one more foreign player in their squad than they are permitted under UEFA rules.
As punishment for breaching financial fair play rules City are limited to just 16 foreign players in their squad rather than the usual 17.
City manager Manuel Pellegrini decided he could make do with just three senior forwards, Sergio Aguero, Edin Dzeko and Bony, leaving no room for Jovetic.
The Montenegro striker joined City from Fiorentina before the start of last season and has yet to find his best form.
He has been frequently hampered by injury while also struggling to displace City's other striking talents ahead of him in the pecking order.
City face Barcelona in the last 16 of the Champions League with the first leg at home on Feb. 24.
(Reporting by Toby Davis; editing by Justin Palmer)
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