The Borussia Dortmund star has been highly sought after over the past couple of years, with the likes of FC Barcelona, Real Madrid, and Manchester City among the clubs believed to have an interest in securing his signature.
It is now understood that the Premier League champions have made headway in their pursuit of the 21-year-old, with the Daily Mail reporting that the striker's representatives have agreed terms on a deal for him to join the Etihad outfit.
Pep Guardiola's side is reportedly set to trigger Haaland's £63 million (R1.2 billion) release clause in his contract with Dortmund, and will hand him a record-breaking salary of more than £500 000 (R9.5 million) a week, which would make him the English top flight's highest-paid player.
The lucrative contract is expected to run over five years and it is believed the deal will be completed over the coming weeks.
Alf-Inge Haaland, the marksman's father who represented the Citizens during his own playing career, is understood to have been heavily involved in the negotiations.