Benfica have confirmed they are in talks with Manchester City over the sale of goalkeeper Ederson, but they have not yet reached an agreement.
The 23-year-old has been widely tipped to join Pep Guardiola's side and a transfer seems a matter of time following the Portuguese champions' announcement.
"Benfica hereby announces, in accordance with article 248 of the CMVM, that the club is negotiating the sale of Ederson with Manchester City," read an official statement.
"Talks have not been completed yet."
City are keen to add a new goalkeeper to their squad after the release of Willy Caballero, while Guardiola is thought to be unhappy with Claudio Bravo's performances.
The Chile international joined from Barcelona last year, but has failed to live up to the high expectations.
Joe Hart also returns to the Etihad Stadium following his loan spell at Torino, but the England international's future appears to lie elsewhere.
The Premier League side have therefore set their sights on Ederson, with reports suggesting they are willing to pay up to £35 million for his services.
The former Sao Paulo shotstopper would become City's second signing ahead of next season after the capture of Bernardo Silva from Monaco.