Ex-Thai Prime Minister Dr Shinawatra, 59, who last month completed the club's £210m sale to an Abu Dhabi group, arrived back in Britain with his wife Pojaman in August after they had skipped a court hearing in Bangkok - prompting Thai court officials to issue arrest warrants.
He was then spotted with his wife and some of his children shopping in the Surrey market town of Guildford.
A Home Office spokesman has now confirmed that both Dr Shinawatra and his wife applied for asylum on re-entering Britain. It is understood their requests are being considered.
Dr Shinawatra was ousted from power in Thailand in a military coup in 2006. He was facing several court cases and investigations over alleged corruption and abuse of power during his five years of office.
In July a Bangkok court convicted his wife of evading millions in taxes and sentenced her to three years in prison.
Dr Shinawatra, who denies any wrongdoing, has said he felt he could not get a fair trial in Thailand and feared for his life. More than £1bn in cash and assets were frozen by the Thai courts.
However, it was announced last month that current Thai prime minister, Samak Sundaravej, has no plans to seek Dr Shinawatra's extradition .
Dr Shinawatra, who is believed to still have £800m of his personal fortune, may also retain a place within the Manchester City hierarchy.
Although details of the takeover have not been released, the M.E.N. understands that, together with associates, he will retain 10 per cent of the shares.
An announcement is due later this month on who will be on the club's new board, which is expected to be headed by co-chairmen Sheikh Mansour Bin Zayed Al Nahyan, or a representative, and Khaldoun Khalifa Ahmad Al Mubarak.
Dr Shinawatra or his representatives are expected to retain a place on the board due to their shareholding.
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-Soothsayer+ (04/10/2008 at 09:00)
You're welcome with open arms.