Speaking to the CT, the City boss who stays out of club politics said: "We want a smaller squad and want to concentrate on the squad players next season to play here in first team games.
"We want to look after them and train with a group of 20 maximum. "You always get suspensions and injuries but we don't want to train with more than that because it spoils the sessions.
"Some times you can struggle to get a reserve team together because you want to protect your first team and then you are forced to play the kids too early.
"So for us, we don't need the reserve team next year and we want to concentrate solely on the first team. "Maybe if we are successful next year and are at the other end of the league, or even get into the Premier League, who knows, we might change things again. "But that's the way we want to work it.
"It is unlucky and bad timing because if we were having a reserve team next season I might have given some of the young boys a new contract, but we don't want to waste their time."
Covsupport understands that the Academy is safe for another season but may be removed if the club's financial climate worsens.