The youngster will reportedly be sent back out on loan rather than staying at the Etihad.
The Blues will pay £8million to sign the highly-rated forward, who has reportedly turned down a new contract at Craven Cottage so he can force the move through.
They are likely to pay the majority of the fee up front with add-ons expected to follow.
However, it is unlikely that the youngster will be a regular starter in the City first-team any time soon, with it believed that the club will be quick to loan out the 18-year-old once the deal is secured.
The move is not a surprising one from the former Premier League champions, and also highlights their desire to bring in more English players so as to increase their home-grown quota - with speculation crediting them with holding an interest in a number of England’s brightest stars.
The England under-19 starlet is one of the country’s hottest prospects, but will hope the move doesn’t see his career stagnate at the Etihad in a similar manner to other English talents such as Scott Sinclair and Jack Rodwell in the recent past.