The player's agent, Antonio Araujo, is optimistic the long-touted deal is edging closer to completion, with the Porto midfielder ready to travel to England "immediately"
The Brazilian signed a new contract with Porto after City manager Manuel Pellegrini failed with a January deadline-day bid to sign the midfielder and his team-mate Eliaquim Mangala.
Fernando and Bacary Sagna are expected to become City's first two signings of the summer and Fernando's agent has revealed a £12 million deal is edging closer to completion after inital hold-ups.
"Everything is in Porto's hands and we hope to finalise the transfer by the end of the week," Antonio Araujo told Maisfutebol.
"Fernando is in the city of Porto waiting for Porto tell him their decision about the documents they have received so that he can travel immediately [to Manchester]."
The 26-year-old, who was recently denied the opportunity by Fifa to represent Portugal, has been targeted by City for his midfield anchorman qualities.
He was a regular feature in the Porto starting XI last season, making 36 appearances for the third-placed club, with Everton and a number of Serie A sides also reportedly interested in the player.