Manchester United have agreed a fee in principle of 85m euros (£73m) with Borussia Dortmund for Jadon Sancho.
The 21-year-old England winger, who is yet to have a medical or agree personal terms, is expected to sign a five-year contract with the option of a sixth.
The fee, payable over five equal instalments, will see Sancho become the second-most expensive English player of all time behind Harry Maguire.
Defender Maguire joined United from Leicester for £80m in 2019.
Manchester City are due 15% of the profit Dortmund will make on Sancho, who joined the Bundesliga club from the Blues for £10m four years ago. That equates to about £9.5m.
United boss Ole Gunnar Solskjaer has identified four key positions he wants to improve as they look to build on their progress last season.
After steering his side to second in the Premier League and the Europa League final, the Norwegian is looking to strengthen the right side of his midfield, then the central defensive, midfield and attacking areas.
Sancho fills the first of those.
The deal brings to an end a long chase for the Londoner. United expected to sign him last summer but could not agree a fee.
Sancho scored 50 goals and registered 57 assists in 137 appearances for Dortmund, scoring twice in the German Cup final to help the Bundesliga side to a 4-1 victory over RB Leipzig in May.
He has won 20 caps for England since his international debut in 2018, scoring three goals, and was named in the Bundesliga Team of the Season in 2018-19 and 2019-20.