The 26-year-old was the subject of a bid from City in January that was rejected, but Manuel Pellegrini's side reopened talks for the player who joined Porto in 2008.

Fernando is not at the World Cup finals having not been called up by his native Brazil.

Earlier this year he was ruled ineligible by world football's governing body FIFA to play for Portugal, for who is now a naturalised citizen, because he had already played for Brazil during under-20 World Cup qualifiers.

As he now has a Portuguese passport, City no longer require a work permit to sign the midfielder who won four league titles and the Europa League in 2011 with Porto.