The reigning Premier League champions have reached an agreement to sign Ante Palaversa from Hajduk Split for an initial £7 million, the Guardian's Fabrizio Romano and Aleksandar Holiga report.
Palaversa could remain with the Croatian giants for the remainder of this season and all of the following campaign to aid his development.
Romano and Holiga expect City to announce the signing in the next few days.
Palaversa, who captains Croatia's Under-19 side, has established himself in Hajduk's first team alongside gifted Gambian midfielder Hamza Barry and his on-field intelligence has led observers to cite similarities to Real Madrid's Kroos.
But it may be Palaversa's potential to turn into a No. 6 - a spot where Pep Guardiola's side is heavily reliant on the 33-year-old Fernandinho - that has alerted City.
A popular complaint among Croatians is that exciting youngsters have tended to have their heads turned by avarice and fame rather than working to reach their peak. Palaversa is understood to be a mature youngster extremely committed to forging a successful playing career.
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