Villa are closing on a £15m deal for Douglas, says the Telegraph.
Dean Smith's spending spree will see the Brazil U23 star become his eighth signing of the summer.
Douglas, 21, has failed to make a single appearance for City and spent his last two seasons on loan at Girona.
Despite being highly-rated by Pep Guardiola, the defensive midfielder couldn't join the Premier League champions last year as he was denied a work permit by the FA.
But no issues are expected now and Villa are confident they will complete his signing in the next few days.