The move would eclipse Leeds United's previous transfer record of around £35.5 million, paid for Georginio Rutter in January 2023, and comes after Trafford fell down the pecking order at the Etihad following the deadline-day arrival of Gianluigi Donnarumma last summer.
Restricted to 17 appearances, mostly in the domestic cups, Trafford started both the Carabao Cup and FA Cup finals as City won both trophies, but has made clear his desire to return to regular first-team football elsewhere.
Newcastle United, Chelsea and Aston Villa were all credited with interest in the 23-year-old at various points this summer, with Newcastle reportedly leading the chase as recently as three weeks ago before Trafford made his preference for a move to Elland Road known, easing Leeds's path to an agreement.
The England international would become Leeds's third signing of the window, following the arrivals of Tarik Muharemović from Sassuolo and free agent Harry Wilson from Fulham.
Trafford's departure would end Leeds needing a fresh No 1 of their own, with Karl Darlow — who ended last season as first choice — having already left for Manchester United on a free transfer. Lucas Perri remains at Elland Road having been displaced by Darlow during the 2025-26 campaign, with youngster Alex Cairns also part of the squad, though Trafford's arrival is expected to see him installed as Daniel Farke's first-choice goalkeeper immediately, reports the Athletic.
A product of Manchester City's own academy, Trafford previously spent loan spells at Accrington Stanley and Bolton Wanderers before joining Burnley in 2023, only to be brought back to the Etihad for a then British-record goalkeeper fee last summer.
Trafford's frustration at his role became public in February, when he admitted that operating as City's second-choice goalkeeper "wasn't what I expected" and said he had "tried to guard against the situation happening." His path back to Manchester City was itself a notable saga: City had originally planned to offload either Ederson or Stefan Ortega before pursuing him, only accelerating their move after Newcastle lodged a bid with Burnley under a buy-back clause written into his 2023 exit.
City are expected to bring in a replacement of their own once Trafford's move to Leeds is finalised, with the England international hoping regular football at Elland Road can help re-establish him as a contender for the national team's long-term goalkeeping plans.