Manchester City and Chelsea have agreed to a fee for midfielder Mateo Kovacic, sources told ESPN.
City are set to pay £25 million ($32m) up front for the Croatia international, with another £5m ($6m) due in add-ons.
Sources have told ESPN that Chelsea were initially hoping to agree a deal worth closer to £35m ($44m) but reduced their demands in order to reach an agreement before June 30. Outgoings completed before then will fall under the first full tax year and help Chelsea comply with UEFA's Financial Fair Play rules.
Kovacic will undergo a medical before joining Pep Guardiola's squad ahead of City's preseason tour of Japan and South Korea, which begins at the end of July
