The 22-year-old broke into Parma’s first team last season, making 33 appearances across all competitions as they ended their Serie A campaign in 13th.
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Circati also represented the Socceroos at this summer’s World Cup, playing every minute of their tournament before being eliminated by Egypt at the round of 32.
Per Fabrizio Romano, the centre-back is now on his way to Portugese giants Benfica for a fee of €20m plus add-ons.
The player has also given his ‘green light’ ahead of the proposed move as he prepares to link up with former Fulham boss Marco Silva.
Benfica had also been linked with Chelsea’s Tosin Adarabioyo and had a bid rejected by Southampton for Taylor Harwood-Bellis.