The Manchester Evening News reported earlier this week that both clubs had told players not to use Twitter and Facebook.
The MEN said City had confirmed that players at Eastlands had been advised not to set up social networking pages.
However, Manchester City chief communications officer Vicky Kloss told PRWeek: ‘At Manchester City, we are very active in social media and I believe we are the first Premier League club to have appointed a dedicated social media executive in the communications department.'
‘I think there was a little confusion in the Manchester Evening News article which suggests we forbid players from setting up social networking sites. I would like to clarify that this is not the case. We have a Code of Conduct for our players and one guideline states that we expect players not to disclose sensitive club information via such sites. But we do not forbid their usage.'
Manchester United also told PRWeek that players are not banned from using the sites, but that currently they all choose not to.
Last week, the club posted a statement on its website warning fans that no players from the team maintain personal profiles on social networking websites. The footballers were advised against posting personal information on the internet after they were targeted by a raft of fake accounts.
The stories follow a series of newspaper articles involving sports professionals being reprimanded for their use of Twitter.
Last week, Liverpool player Ryan Babel hit the headlines for complaining that he had been left out of the line-up for his team's match against Stoke City. Sunderland striker Darren Bent also complained on the social networking site about his previous club Tottenham Hotspur.