City are now working to strengthen their central midfield ahead of next season, and have been strongly linked with Nottingham Forest's Elliot Anderson, 23, who is under contract with the Midlands club until the summer of 2029.
The Athletic reported last week that Manchester City had submitted a bid worth more than £120m for the midfielder, but Forest rejected the offer and are said to want a guaranteed British record fee before bonuses.
Transfer journalist Fabrizio Romano now reports that City are feeling confident about completing a deal for Anderson.
According to Romano, the clubs are in the final stages of negotiations, with further discussions expected to take place and a medical for Anderson reportedly set to follow in the United States if everything proceeds as planned.
The deal would represent a significant statement of intent from City as they look to rebuild a midfield that has already lost Bernardo Silva this summer, with Anderson viewed as a long-term building block for the club's new era under an incoming head coach.
Anderson has emerged as one of the most highly-rated young midfielders in the Premier League over the past two seasons, with his combination of ball-carrying ability and defensive work rate making him a target for several of England's leading clubs before City moved decisively to secure his signature.
A fee in excess of £120m would rank among the most expensive deals in Premier League history for a player who has yet to win a major trophy, underlining the scale of City's ambition as they reshape the squad for the post-Guardiola era.