Chelsea and Manchester City are preparing documentation to request their withdrawal from the European Super League (ESL), BBC reported.
Efforts to leave come just two days after Chelsea were announced as one of six English clubs to sign up to the controversial new competition, BBC understands.
The ESL has been widely criticised since being announced on Sunday.
"Manchester City Football Club can confirm that it has formally enacted the procedures to withdraw from the group developing plans for a European Super League," Manchester City confirmed the news through an official press release.
Around 1,000 fans gathered outside Chelsea's Stamford Bridge home ground before their game against Brighton on Tuesday to protest their involvement.
Manchester City have told organisers that they do not wish to be part of the Super League, Sky Sports understands.
Uefa President Aleksander Ceferin welcomed the withdrawal of Manchester City from the proposed Super League.
He said: "I am delighted to welcome City back to the European football family."
"City are a real asset for the game and I am delighted to be working with them for a better future for the European game."
City join Chelsea as the second of the six English member clubs to choose to withdraw following a hugely negative global reaction to the planned competition.
Sky understands Chelsea felt it was in danger of overshadowing all the good work they have been doing in the community on the pandemic, fighting racism and antisemitism.
Manchester United, Liverpool, Tottenham and Arsenal are the remaining four English clubs tied to the competition.
In total, 12 European clubs announced their intentions to form the breakaway league, which they hoped to establish as a new midweek competition.It was condemned by football authorities and government ministers in the UK and across Europe by Uefa and leagues associations.
Chelsea were the first club to indicate they will not press ahead with plans and City followed soon after.
Chelsea and City were not drivers of this plan, they were the last to sign and feared being left behind.
It is not clear how easy it is or how binding the contracts are.
Clearly something changed on Tuesday, whether it was the backlash, the worldwide condemnation, the political pressure or whether the players have have had their say.