Celta Vigo striker, Nolito is already in Manchester ahead of completing a move to the Etihad stadium.
The Spain international will be officially confirmed as the second major signing for Pep Guardiola later this week as the new City manager steps up his preparations for pre-season.
City triggered the buy-out clause in Nolito’s contract earlier this month and have beaten off rival interest from Guardiola’s former club Barcelona to sign the striker, who has been cleared for talks after Spain’s exit at the Euros in France.
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After scoring 12 goals in La Liga last season, Nolito emerged as a priority target for Guardiola and he will join £21million signing Ilkay Gundogan at the Etihad Stadium.
The 29-year-old, who also scored in Spain’s 3-0 win over Turkey at Euro 2016, is expected to sign a three-year contract and will have his medical in Manchester in the next 24 hours.