His former club, Velez Sarsfield in Argentina, claim that City approached the player when he was 15 before signing him a few days after he turned 16.
The Court of Arbitration for Sport (CAS) are set to release a verdict in the coming days and it is understood that City were given indication on Tuesday morning that they had won.
Garre has yet to play for City's first team.
He plays wide and possesses both pace and trickery in abundance.
He has won 10 caps at youth level for Argentina across U15 and U17 level. He has represented Argentina at Under-15 and Under-17 level and was even chosen to train with the senior squad during the November global break previous year, rubbing shoulders with Lionel Messi.More news: DAMN: Kendrick Lamar becomes first rapper to win a Pulitzer Prize
In May 2017, the Premier League fined City £300,000 and banned them from signing academy players for two years after they were found to have approached the family of two young players who were registered with other clubs.
There had been serious concern at the opposite outcome and defeat would have left the club staring at an embargo on transfers over two windows.
Spanish giants Barcelona, Real Madrid and Atletico Madrid have been banned for breaching rules governing the signing of global players under the age of 18 in recent years. If they are disciplined by CAS, they will most likely appeal and delay the implementation of the ban.
BC-SOC-CAS-FIFA-Man City, 128Sports court sides with Man City in transfer dispute caseEds: APNewsNow. City insist they acted within the rules. But Velez claimed Federation Internationale de Football Association rules only allow that between countries within Europe - the transfer of Cesc Fabregas from Barcelona to Arsenal in 2003, for example.
Velez took their complaint to Lausanne-based Cas, where the case was heard last summer.
That is why a court case that was heard in July a year ago, with a verdict due by the end of September, has been delayed.