The 23-year-old is set for the Etihad Stadium after the Italian side announced that a deal worth a total of 30 million euros has been reached
The Premier League runner-up will pay 27 million euros plus add-ons for the Montenegrin forward.
Fiorentina officials, including CEO Sandro Mencucci, were at Carrington on Thursday to finalize terms with City, Goal understands.
The Serie A side will get a package meeting its 30 million euro asking price, with 27 million set to be paid up front and a further 3 million to be paid in performance-related bonuses.
The 23-year-old underwent tests at Fiorentina's medical center on Monday, accompanied by the club's doctor, Jacopo Giuliattini.
The news comes 24 hours after Sevilla's announcement of striker Alvaro Negredo's departure to the Etihad Stadium.