Man City have reached a verbal agreement with Wolves for midfielder Matheus Nunes.
Man City are expected to pay €55m (£47.3m) up front for the 25-year-old, with add-ons still yet to be finalised.
There is no formal agreement yet, and discussions remain ongoing.
City youngster Tommy Doyle will go to Wolves on an initial loan with a £4.3m (€5m) option and a significant sell-on clause.
The deals are separate but Doyle's move has helped with negotiations.
Chelsea inquire over signing City's Palmer
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Cole Palmer celebrates after breaking the deadlock in the Community Shield with a stunning strike
Chelsea have made an inquiry into signing Cole Palmer from City.
City have become aware of the interest as the move is still in its initial stages. Pep Guardiola has previously stated that a permanent switch would be more suitable for the player rather than a loan move.
Palmer played in the Premier League opener against Burnley and was on the bench for the last two games.
More to follow....