Charles was on Manchester City's books as a teenager before making the switch to Hillsborough in 2021, where he went on to establish himself as first-choice goalkeeper and Northern Ireland's senior number one.
The move now being finalised would see him return to the Etihad as cover, with James Trafford looking increasingly likely to move on once the World Cup concludes, having struggled for game time behind Gianluigi Donnarumma. Newcastle United and Tottenham Hotspur have both been credited with interest in Trafford's situation.
Reports on the fee suggest Sheffield Wednesday would receive a guaranteed £3m, with add-ons capable of pushing the total value beyond £10m. Given his standing as a senior international already accustomed to first-team football, City are expected to send Charles out on loan for the 2026-27 season rather than have him sit on the bench behind Donnarumma, with a return to the Championship viewed as the most likely path for his continued development.
Charles is the younger brother of Southampton midfielder Shea Charles, who is himself attracting interest from Leeds United this summer, meaning the family could see two members on the move in the same window if both deals progress.
For Sheffield Wednesday, losing Charles would mean parting with one of their most highly rated recent academy graduates, though the sale is viewed as sensible business given the club's relegation to League One and Charles entering the final year of his contract.
Sporting director Simon Wilson said the club understood the player's ambitions: "As soon as we decided we want to keep him, he's got to want to stay and there might be offers that are out there that we at this moment in time can't compete with — and that might be salary or it might be level of competition.
"These are young, ambitious guys that want to play at the top of their profession."