Reported Chelsea target Danilo is expected to join Manchester City in a deal worth £26.5m, according to The Guardian.
The Real Madrid full-back, who plays his international football with Brazil, was linked with a move to the Premier League champions after falling down the pecking order at the Bernebeu.
But City, who last week completed the transfer of another right-sided defender, Kyle Walker, are said to have stolen a march on their West London counterparts by agreeing a fee with his current side.
Pep Guardiola was originally in the market for a pair of right-backs, but saw his advances for Dani Alves rebuffed when the player elected to join PSG instead.
And the Spaniard has now settled on 26-year-old Danilo as the man to push England international Walker for a regular starting berth at the Etihad.
City have also signed midfield play-maker Bernardo Silva from Monaco, as well as Benfica's 23-year-old goalkeeper Ederson.
It is the second time in as many weeks that Chelsea have seen their primary transfer target join a Premier League rival instead, after Romelu Lukaku signed for Manchester United in a £75m deal.