City had been working to sign the 24-year-old throughout January; having initially been happy to bring him to the Etihad Stadium at the end of the season, they then stepped up their efforts midway through the month and attempted to recruit his services before the winter transfer deadline.
The Blues were unable to break Shakhtar's determination to keep the midfielder for the remainder of their Uefa Champions League campaign, but they have been in constant talks with the club over the past week to put together an agreement which will come into effect this summer.
It is believed that all parties have agreed on the terms of the move, although nothing is officially signed.
Former Arsenal midfielder Gilberto Silva is one of Fred's representatives and has helped broker the move.
Fred has been determined to join City ever since they first made their interest clear towards the end of 2017.
City first showed interest in Fred before Christmas , and it became apparent during the January transfer window that a deal worth roughly £40m was close to being agreed.
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