Pep Guardiola’s side are set to sign the 26-year-old from PSG for a fee of €35million (£30.3m), according to The Athletic’s David Ornstein.
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Donnarumma was deemed surplus to requirements by the Champions League holders after talks over a new contract fell through earlier in the summer.
He will now head to the Premier League just week after City signed England international James Trafford from Burnley.
Long-serving shot stopper Ederson, 32, is now expected to join Turkish side Fenerbahce in a deal worth around €14million.
