Manchester City reached an agreement with Nottingham Forest to sign Elliot Anderson, sources told ESPN.
The England midfielder, who is part of Thomas Tuchel's squad at the World Cup, is set to move to the Etihad Stadium for a record fee for a British player.
Sources close to City say the deal is lower than the previous British record of £125 million set when Alexander Isak moved from Newcastle to Liverpool last summer, and is a fixed fee of £116 million with no add-ons.
Anderson will, however, break the transfer record for a British player, beating Declan Rice's £105 million move from West Ham to Arsenal in 2023. It is also a club record, eclipsing Jack Grealish's £100 million move in 2021.
City made Anderson their top summer target and have finally sealed a deal after seeing two previous bids turned down.
Anderson is ready to have his medical in the United States, where he is preparing for England's last World Cup group game against Panama on Saturday.
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The 23-year-old will become City's first major signing since the departure of Pep Guardiola as manager at the end of the season.
Former Chelsea boss Enzo Maresca is expected to be announced as Guardiola's replacement imminently.
The club has moved to bolster its midfield with Anderson, who was also wanted by Manchester United, after Bernardo Silva joined Real Madrid on a free transfer and amid ongoing doubts about the futures of Nico González and Tijjani Reijnders.