The 2006 World Cup winner, who scored 19 goals in 57 caps for Italy, is already familiar with Parma, having spent three seasons there as a player between 2002 and 2005.
The Abu Dhabi-backed super-club were found to have arranged "sham" deals to artificially inflate revenues and reduce costs by more than £900 million ($1.2 billion) between 2009 and 2018.
On the streets of Manchester, people voiced shock and dismay at the scale of financial wrongdoing by Manchester City, with some calling for the football club to be relegated from the Premier League.