Palmeiras have not registered Vitor Reis for the 2025 Campeonato Paulista with the teenage defender expected to join Manchester City.
Reis did not take part in Palmeiras' training session on Tuesday's but was spotted at the club's facilities saying goodbye to his teammates and staff members.
With negotiations between City and Palmeiras at an advanced stage, the Sao Paulo-based club has omitted Reis from the squad for the upcoming Campeonato Paulista.
Palmeiras president Leila Pereira confirmed earlier this week that an official offer had arrived from City for Reis but it was below their asking price.
However, City upped their bid to a fixed €35 million ($36m) for Reis on Tuesday and Palmeiras have reportedly agreed a deal.
Should the transfer be completed, the fee would be a Brazilian league record for a defender, surpassing the €20m transfer that Paris Saint-Germain spent on Lucas Beraldo's move from Sao Paulo in 2023.
Reis, who turned 19 on Sunday, is expected to travel to England in the coming days to undergo medical before signing his contract with City.
The Brazilian giants were hoping to reach an agreement with City for Reis to remain at Palmeiras until after the FIFA Club World Cup in July.
However, Palmeiras have accepted City's offer for the player to join them in this transfer window.
Reis scored two goals in 22 professional games since being promoted to Palmeiras' first team in June 2024. His contract with Palmeiras expires in December 2028 and he has a €100m release clause.
City's other new young talent Abdukodir Khusanov will also travel to the club to undergo a medical on Thursday, sources told ESPN.
