Manchester United believe they have won the race for Fred – with the Brazilian midfielder likely to undergo a medical next week.
The 25-year-old has been in talks with the Old Trafford club after a January move to rivals City collapsed.
And it is understood Jose Mourinho feels he has now got his man from Shakhtar Donetsk, for an initial fee of around £43m plus add-ons which would take it to £52.2m.
The development comes as City continue their efforts to land their alternative, Napoli’s Jorginho.
Fred is due in England this weekend for Brazil’s pre-World Cup fixture with Croatia at Anfield.
Mourinho has previously spoken of his desire to bring a Brazilian to Old Trafford, telling ESPN Brazil in April: ‘I think a team without a Brazilian isn’t a team.’ He later added: ‘Who knows, we can have a Brazilian in the squad next year.’