The two clubs have been in talks for Torres, 20, and have now reached an understanding on the price.
City will reportedly pay an initial €25m for the highly-rated winger, plus a further €10m in variables.
Negotiations are now so advanced that the clubs are exchanging contracts with terms ‘fully agreed’.
— Héctor Gómez (@Generaldepie_) July 29, 2020
It is a very low price for one of Spain’s most talented young players, but reflects both Valencia’s financial state and Torres’ contract situation.
Torres is entering the final 12 months of his deal and Valencia have failed to convince him to stay.
A host of clubs have been interested, with Gómez also revealing that Torres has turned down Real Madrid for City.
Torres made 43 appearances in total for Valencia this season, scoring six and assisting seven goals.