The 22-year-old Brazilian will provide fresh legs on the flank once his compatriot completes a move to Tottenham Hotspur, with City agreeing to pay a fixed fee of £32million, plus a further £2.2million in add-ons. A medical is scheduled to take place in the coming days.
Allan's release clause at Palmeiras had stood at around €100million, but City are understood to have talked the Brazilian club down substantially, with Palmeiras previously reluctant to sanction a sale before the January window. Personal terms are already understood to be agreed, with the winger keen on the move to the Premier League champions.
Manchester City's business does not stop there. The club remain in advanced talks to sell Egypt forward Omar Marmoush to Spurs, and sources with knowledge of the situation say there is a "good chance" that deal gets completed before the 1 September transfer deadline, even though discussions are ongoing and some details are yet to be agreed.
Marmoush only joined City from Eintracht Frankfurt in January 2025 but would follow Savinho out of the Etihad Stadium as part of a significant reshuffle of Enzo Maresca's attacking options. Savinho's own departure is expected to be worth up to £85million, with an initial £75million and a further £10million in potential add-ons.
Midfielder Nico González may also depart before the end of the transfer window, with strong interest in the Spaniard from Newcastle United, who are searching for fresh central-midfield options following the departures of Sandro Tonali and Bruno Guimarães this summer.
Should all three deals be completed, City would be facing one of the most significant reshapes of their squad in recent transfer windows, offsetting substantial incoming investment in Allan with major sales that could bring in well over £100million combined.
Allan has emerged as one of Brazilian football's most promising young wingers over the past two seasons, known for a work rate that extends to defensive duties as well as attacking output — a trait Palmeiras coach Abel Ferreira has repeatedly highlighted as central to his value.
His versatility across the front line, including spells at right-back and within a back three, adds further depth to City's options as Maresca looks to build a squad capable of competing on multiple fronts this season.