Schalke winger Leroy Sane was in Manchester over the weekend to finalise a move that could be worth in excess of £30m, according to Sky in Germany.
Sane informed the German club last week he wanted to leave to push through a transfer to City, after talks between the clubs stalled because they couldn't agree on the valuation of the player.
The 20-year-old can operate on either flank and his arrival would further bolster Pep Guardiola's attacking options following the acquisition of Nolito for £13.8m from Celta Vigo earlier this summer.
John Stones is wanted by Pep Guardiola
City's owners are also confident they can wrap up a deal for Everton defender John Stones in the next week for a fee in the region of £50m, according to Sky sources.
Guardiola confirmed recently that discussions with Everton were ongoing and City are now hopeful a deal is nearing completion.
The Spaniard wants to implement more of a passing strategy this season and views Stones - well known for his ability on the ball - as the perfect candidate to build City's attacks from the back.
It is also understood City are in talks to sign Gabriel Jesus and Marlos Moreno, and that they could elect to pursue centre-back Leonardo Bonucci if they are unable to agree a deal for Stones.
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