The England defender has accepted in principle City's offer of £50,000 a week after it was made clear to him by the Blues that they would cash in on him in the summer.
The 19-year-old will seal a four-and-a-half-year deal once the transfer window closes this week. A source close to the Richards camp said: "Sometimes you have to compromise in football and that's what has happened.
"Micah wants to stay and will sign. It would have already been done but the club have been too busy trying to bring players in to hold talks."