Driver Kulwant Singh, 32, was killed with his sister, front seat passenger Ravel-Kaur Singh, 37, when their red Nissan Micra was in collision with a silver Mercedes which the Premier League player, 18, was understood to have been driving.
A second man, aged 19, who was driving a grey Volkswagen Golf, was also arrested on suspicion of causing death by dangerous driving and has been bailed.
A spokesman for Greater Manchester Police said: "Two men arrested on suspicion of causing death by dangerous driving following a fatal collision in north Manchester have been bailed."
Both men have been bailed until November 23. Mr Singh was from Salford and his sister from Cheetham Hill, Manchester.
The crash also injured Ms Singh's two sons, who were back-seat passengers in the Micra.
The 16-year-old boy has a head injury which is not believed to be life-threatening while the 17-year-old boy suffered a serious head injury and remains in a critical condition.
Meppen-Walter and the driver of the Golf were arrested at the scene of the crash at around 10.15pm on Saturday on Bury New Road in Manchester.
A Manchester City FC spokeswoman said earlier: "It is a devastating tragedy for this family and also for the Greater Manchester community at large. Manchester City Football Club offers its heartfelt condolences to the family and all affected by the events of (Saturday) evening.
"The situation is subject to an extensive investigation by Greater Manchester Police and therefore we are unable to make specific comment on the incident itself at this time."
Sources said that Meppen-Walter, who was born in Bury, Greater Manchester, was driving a "low-powered" Mercedes at the time of the collision.
The defender joined City in July 2010, according to the club's website.
The youth team player has been a regular in the England under-17 side.
Police are appealing to anyone who witnessed the crash to call the serious collision unit on 0161 856 4742.
Source: team talk
Source: team talk