Reports in Germany suggest a move of around £42 million is close to completion.
Leroy Sane is poised to join Manchester City
The 20-year-old has been linked with a move to City ever since Pep Guardiola's arrival at the Etihad, with his stock rising even further on the back of an impressive Euro 2016 with Germany.
Leroy Sane and Patrice Evra in action at Euro 2016
He told Bild back in April that he was eager for a move to Barcelona, while links to Arsenal and Paris Saint-Germain also emerged.
Manchester City manager Guardiola is looking to assemble a squad capable of challenging for the Premier League title
Schalke had previously been keen to hold on to Sane, despite him handing in a transfer request, but he now looks set to sign a four-year deal with Manchester City, who are gearing up for their first season under new boss Guardiola.
While a figure of £42 million has been mentioned, Bild has claimed that a final figure between the two clubs is yet to be agreed.
Whatever the price, Sane looks set to become City's fifth signing of the summer window, following on from Ilkay Gundogan, Nolito, Oleksandr Zinchenko and Aaron Mooy.