The 22-year-old is poised to step into the Etihad spotlight, filling the shoes of fellow Brazilian Savinho, who looks destined for Tottenham Hotspur.
City will pay Palmeiras an initial £32 million for Allan, with another £2.2 million hinging on his performances. The winger is set for a medical in the coming days to finalize the move.
Meanwhile, more twists could await Manchester City’s squad before the September 1 transfer deadline.
The Premier League side remains in advanced negotiations with Tottenham over the potential sale of Egypt international Omar Marmoush. Discussions between the two clubs are continuing, with several details still to be finalized, although there is reportedly growing confidence that an agreement can be reached before the window closes.
Midfielder Nico Gonzalez could also leave the Etihad before the deadline, with Newcastle United showing strong interest in the Spanish midfielder.
With negotiations swirling around both arrivals and departures, City look set for a dramatic finale to the summer transfer window.