The Sun report Mendy's Lamborghini Aventador SVJ was seized by police last month as he was driving without a license and insurance.
Despite the value of the vehicle, Mendy is yet to provide official documentation 20 days after the incident.
Most vehicles can be crushed after 14 days if official paperwork isn't provided and the 26-year-old faces a race against the clock.
A source explained: "Ben is a great footballer but he's not great on bureaucratic details like paperwork.
"He didn't realise he wasn't insured so it's a monumental blunder on his part.
"He's desperately trying to correct it but the fact it's now 20 days since his car was seized, he's at risk of it being destroyed.
"The police know he wants it back and are happy to return it but only once he's provided the necessary paperwork.
"It's worrying that after almost three weeks he still hasn't managed to sort it out. It's a beautiful car and he just wants it back in one piece."
Mendy bought the car in his home country of France last year and posted an image of it on Instagram.
It is currently in a secure pound after being taken to Macclesfield police station.
Mendy joined City from Monaco for £52 million in 2017 but has been ravaged by injury.
He's managed to win two Premier League titles under Pep Guardiola but has only featured in 40 domestic games.
The World Cup winner netted his first goal for City in last weekend's 5-0 thrashing of Burnley.
Mendy opened the doors of his £4.8million property to OTRO and showed off his massive indoor football pitch.
"When like Riyad (Mahrez) comes, (Raheem) Sterling comes, we put the net in the middle," he said.
"You see the strap I put on the floor. It's like the limit and we play two touch.
"You know, like tennis with feet, and we stay for two or three hours."
Once showing off his gym and indoor pitch, Mendy then goes to his trophy room.
There he shows off his extensive medal collection, including a personalised ring from international teammate Paul Pogba.
Featured Image Credit: Benjamin Mendy/Instagram & PA Images
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