Premier League champions City, who are owned by Abu Dhabi-based Sheikh Mansour, saw revenues rise by 51% last year as they climbed five places to seventh on the list, just behind London duo Arsenal and Chelsea.
Real Madrid continue to top the league ahead of Barcelona, while Manchester United stay in third ahead of Bayern Munich despite a small fall in revenue last season.
Austin Houlihan, senior manager in the sports business group at Deloitte, said that City's growth - thanks to Champions League income and the huge new deal with Etihad - was a significant change to the European football landscape.
"Manchester City's Premier League title-winning season combined with participation in the UEFA Champions League, helped drive 51% revenue growth to £231.1m, the largest absolute and relative growth of any Money League club," Houlihan said.
"The club's progress to the top of the English and European game means that they are set to remain a top-10 Money League club for the foreseeable future, and will look to push on ahead of the two English clubs immediately above them, Arsenal and Chelsea, for a top-five ranking."
Arsenal's revenue last season was £235m, only £4m more than City's, but they have a bumper new £150m sponsorship deal with Emirates on the horizon, plus an expected new kit deal with Nike.
European champions Chelsea's revenue may well fall this season following their record high in 2012 after they failed to make the Champions League knockout stages this campaign.
Deloitte's report added: "Chelsea's feat in becoming the first London club to win the UEFA Champions League allowed it to claim fifth place.
"However, an early exit from European competition this year and capacity constraints of their Stamford Bridge home could see them slip down the Money League next year."
Although Barcelona and Real Madrid have seen revenues increase when calculated in euros, when converted to pounds sterling both have experienced a drop.
Deloitte Money League, revenues in 2011/12:
1 Real Madrid £414.7m (£433m in 2010/11)
2 Barcelona £390.8m (£407m)
3 Manchester United £320.3m (£331.4m)
4 Bayern Munich £298.1m (£290.3m)
5 Chelsea £261m (£228.6m)
6 Arsenal £234.9m (£226.8m)
7 Manchester City £231.1m (£153.2m)
8 AC Milan £207.9m (£212m)
9 Liverpool £188.7m (£183.6m)
10 Juventus £158.1m (£139m)