The Brazilian enforcer almost joined the Sky Blues in January, but a deadline day double swoop – Eliaquim Mangala was the other player involved – ended in disappointment.
But despite Fernando having since penned a new contract, he is understood to be on his way to the Etihad Stadium in the coming months.
Reports indicate that a fee of between £12m-£16m will be paid to the Portuguese giants, who have reluctantly agreed to let their man head off.
The 26-year-old has been one of the stars of Porto’s first-team in recent seasons, with his commanding displays from the centre of midfield having attracted much attention.
Big clubs from Spain and Italy have been linked with Fernando, as have Liverpool.
With no World Cup on his horizon, the silky holder is expected to jet in to Manchester to seal his switch in the coming days.
Fernando is likely to challenge Yaya Toure and Fernandinho for a starting berth under Manuel Pellegrini.