Manchester City have agreed a £50m deal with Shakhtar Donetsk to sign midfielder Fred next summer, the Mirror have reported.
The Brazilian international caught the eye when playing against Pep Guardiola's side in the Champions League group stages.
Shakhtar were reluctant to allow Fred to leave during last month's transfer window with a last-16 tie against Roma on the horizon.
But they have agreed to a deal which will see the 24-year-old switch to the Etihad ahead of next season.
Manchester United had been interested in Fred, but dropped out when he made clear his preference for City.
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The former Internacional man is viewed as the potential long-term successor to compatriot Fernandinho, who has marshalled City's midfield expertly so far this season.
But the defensive midfielder, who also arrived at the club from Shakhtar, is 32-years-old now and entering the latter stages of his career .
Fred began his career as a left-sided midfielder before moving to a central role and thriving with the Ukrainian champions.
Shakhtar manager Mircea Lucescu last week suggested that he would be joining City, although a deal at that point had not been confirmed.
"Shakhtar Donetsk's best player is Fred in the centre of midfield," said the Romanian coach. "He was a bit anarchic on the left. I moved him in front of the defence. He will go to City like Fernandinho before him."