It’s been arguably the defining transfer saga of the summer, with Fernandez, 25, angling for a move away from Stamford Bridge since the start of 2026.
The midfielder had previously flirted with Real Madrid, which resulted in a two-game suspension, handed to him by Chelsea under Liam Rosenior.
Despite wanting join, the Spanish giants ended up releasing a statement insisting they had no interest in signing Fernandez this summer.
Man City became the most likely destination for the wantaway star, with former boss Enzo Maresca pushing to get the deal done.
Now, according to David Ornstein, the two clubs have finally agreed a massive £125 million deal that would see Fernandez leave West London for Manchester.
The fee matches the British record deal that saw Alexander Isak leave Newcastle for Liverpool last summer and also marks the most expensive signing in Man City history.
Fernandez has now been given permission by Chelsea to undergo a medical ahead of the proposed move.
The Argentina international becomes the first player to move for over £100 million twice, having joined Chelsea from Benfica for £106 million in January 2023.
City have already signed England midfielder Elliot Anderson from Nottingham Forest for £116m and Ayyoub Bouaddi from Lille for an initial €95m as part of their midfield rebuild.