El Dia says City are in advanced talks to sign the 17 year-old attacker for €20m.
Sarmiento will initially be registered with the City Football Group, suggesting he will spend time at one of City's satellite clubs ahead of eventually making it to the English giants.
The deal will be completed next summer and include a 20 per cent sell-on clause for Estudiantes.
Despite his youth, Sarmiento boasts 11 first team appearances for his Argentine club.
Need a VPN? Or seeking to switch? Then support Tribal Football by clicking here to sign up with our official partners NordVPN. Not only will you receive the best VPN experience, but also great discounts by signing up via Tribal Football. Thanks for your support!