The agreement includes a 10% sell-on clause for Wolves from any future profit City makes on the 25-year-old.

Nunes is now free to travel to Manchester for a medical.

City had a previous bid for the Portugal international turned down last week, as Wolves demanded a fee closer to their asking price of more than £60 million.

Nunes has recently been AWOL from training after stating his desire to join Pep Guardiola’s squad.

Furthermore, Wolves have agreed to take City’s England Under-21 international Tommy Doyle on loan, with the potential of a £4.3m deal with a 50% sell-on clause.

Even before Kevin de Bruyne suffered a hamstring injury that could keep him out for four months, City intended to strengthen their midfield alternatives.

Lucas Paqueta of West Ham was considered until it was revealed that the Brazilian, 25, is being investigated by the Football Association for alleged betting rule violations.

Wolves boss Gary O’Neill stated following the club’s Carabao Cup triumph against Blackpool on Tuesday that he anticipated Nunes to stay beyond Friday’s transfer deadline.

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The Midlands club recruited Nunes to a five-year contract last summer, paying Sporting Lisbon a club-record £38 million.

He was a major figure in Wolves avoiding relegation in the second part of the season, finishing 13th in the standings.

‘A deal that works for everyone’ – commentary
If it is completed, this arrangement appears to be beneficial to all sides.

With De Bruyne out for a lengthy period of time, Pep Guardiola requires more choices in midfield, and Nunes was outstanding in navigating Wolves away from the relegation zone after he had settled in.

He may not have the passing range of De Bruyne – who does? – but he has excellent vision and understands how to exploit space.

This represents a broad repositioning of Wolves.

With the appointment of Matt Hobbs as technical director, Molineux adopted a more English-focused, less Portuguese perspective.

Gary O’Neil’s appointment as manager was a big part of this, and while Nunes’ departure will not be followed by a slew of domestic signings, Doyle’s arrival fits into the overall plan.

City clearly has aims for this season, whereas Wolves has quite different ones.

This agreement may genuinely assist both of them reach their goals.