The 20-year-old has just one year left on his contract at Mestalla having rejected any new offers to stay.
According to Eurosport, Ferran agreed to join City on Wednesday in a meeting between the Premier League club and the player's agent.
City will now have to agree on a fee with Valencia, who are looking to cash in on the youngster because of his contract situation.
Ferran has a release clause of €100million, but the circumstances surrounding his contract mean that any transfer fee for him would be significantly less.
With City cleared of their European ban by the Court of Arbitration for Sport (CAS), they are free to spend money knowing the future of the club is secure.
Pep Guardiola is apparently looking for a replacement for the departed Leroy Sane and singled out Ferran himself.
#CITYZENS
Saif
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