Earmarking the Croatian international as the top midfield target for the summer, the Premier League champions have been working around the clock on the deal and have made a breakthrough.
Chelsea have decided to sell Kovacic as part of a massive clearout this summer to help balance the books.
Bundesliga giants Bayern Munich have also been linked with Kovacic, but the Cityzens are in pole position to sign him.
Following a disappointing spell at Real Madrid, where he was deprived of regular game time, Kovacic has revived his career at Stamford Bridge since his move in 2018.
The 29-year-old has made more than 200 appearances for the Blues. He played a pivotal role in the 2018/19 Europa League triumph and the 20/2021 Champions League success.
However, Kovacic experienced a turbulent campaign with the Blues this term, with the team finishing 12th in the Premier League and failing to win silverware.
Kovacic recently commented on the speculation about the move.
“Manchester City is a top team and deserves to be in the Champions League final,” Kovacic said (h/t Manchester Evening News).
“That’s what I have to say. The summer is long – we’ll see what happens,”
City are looking to find a replacement for Ilkay Gundogan, who is on the verge of leaving the Etihad Stadium, with his contract expiring at the end of the month.
They are planning to discuss the transfer fee with Chelsea after the Champions League final.
Kovavic is considered one of the best central midfielders in Europe, and Guardiola can make the most out of his prime years.
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