Manchester U21 captain Shea Charles is on his way to Southampton.
The Manchester Evening News says a fee has been agreed between the two clubs.
Saints will pay ?10.5m up front rising to a full fee of ?15m for Charles.
The Northern Ireland international made his debut for City last season against Brentford. He captained the U21s to to a third-successive Premier League 2 title.
A deal could happen in the coming days.