Manchester City have agreed to buy FC Porto`s Brazilian midfielder Fernando for 15 million euros ($20.45 million), the Portuguese side said in a stock market statement on Wednesday.
Premier League champions City have not confirmed the deal but have long been linked with the player in the media.
The 26-year-old is not part of Brazil`s World Cup squad.
He would be City`s second recruit of the close season after France right back Bacary Sagna agreed a move from Arsenal.
City are ploughing ahead with their transfer plans despite being fined up to 60 million euros and having their squad capped for next season`s Champions League after breaching UEFA`s financial rules.
Fernando would give City another option in midfield amid speculation about Yaya Toure`s future following disagreements with the club.