The Premier League champions believe a £12 million deal can be completed for the Porto midfielder before the end of the week, with the player expected to fly in to Manchester soon
Director of football Txiki Begiristain has been in Portugual recently to negotiate a fee for the Brazilian-born star, a player the club first registered an interest in in January.
And the Premier League champions believe a deal will be concluded soon, with Fernando expected to fly in to Manchester to complete his move in the coming days.
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However, this was seen largley as a tactic to guarantee Porto a higher transfer fee - and it was agreed by both parties at the time that Fernando could move on this summer if an acceptable offer was made.
There has also been interest in the player from a number of Serie A clubs led by AC Milan but City are confident he wants to join them and of finalising a deal imminently.
The 26-year-old, who was recently denied the opportunity by Fifa to representing Portugal, has been targeted by City for his midfield anchorman qualities. He was a regular for Porto last season, making 36 appearances for the third-placed club.
Fernando and Bacary Sagna are expected to become City's first two signings of the summer as Manuel Pellegrini and Begiristain begin reshaping the title-winning squad.
As revealed by Goal, Sagna is in advanced talks to join City on a free transfer after rejecting a contract extension at Arsenal.