Marc Guéhi is set to have a medical on Sunday ahead of his proposed move to Manchester City, sources have told ESPN.
City have agreed a deal with Crystal Palace worth an initial £20 million ($27m) plus add-ons.
Guéhi, who was set to become a free agent in the summer, has agreed terms on a five-and-half year contract at the Etihad Stadium.
"I don't know yet officially for my club," Pep Guardiola said after City's 2-0 defeat to Manchester United on Saturday. "Apparently it's close but Ferran [Soriano, chief executive] and Hugo [Viana, director of football] didn't tell me anything."
Guéhi will become City's second January signing after the £64m capture of winger Antoine Semenyo from Bournemouth.
Club bosses stepped up talks with Palace and the England defender after injuries to Josko Gvardiol, Rúben Dias and John Stones.
Gvardiol could miss the rest of the season after suffering a leg fracture. Dias is expected to miss another month with a hamstring injury while Stones has only been able to make one Premier League start since August.
Neither Guéhi or Semenyo will be eligible for the Champions League trip to Bodo/Glimt on Tuesday.
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After Palace lost 2-1 to Sunderland, manager Oliver Glasner fumed at the club for selling their captain a day before a game. His fury comes after star player Eberechi Eze was sold to Arsenal in the summer.
"We feel that we have been abandoned completely," Glasner said. "Selling our captain one day before a game.
"That makes me really upset today.
"If your heart gets torn out twice a year ... Eze and Guehi one day before a game."
