Manchester City have agreed a deal to sign Elliot Anderson from Nottingham Forest.
The agreement follows a fresh and improved offer from City as they pushed to close the gap in valuations between the clubs.
The 23-year-old has been given permission to undertake a medical in New York on Friday with the deal subject to the finalising personal terms.
Anderson is currently with England at the World Cup in the United States, Canada and Mexico.
Forest had wanted the fixed fee of any sale of Anderson to be higher than the £125million ($164.9m) British record Liverpool paid Newcastle United for Alexander Isak last summer.
This comes after The Athletic revealed on June 10 that City had made a verbal offer for the midfielder worth £106m ($139.8m) up front with potential add-ons taking it in excess of £120m ($158.3m).
The verbal offer was the second bid the Manchester side had made, after having an opening offer rejected earlier this month.
Anderson joined Forest in 2023 on a £35m ($46.1m) deal which saw Odysseas Vlachodimos go the other way, valuing the England international at £15m ($19.7m).
Since then, he has made 92 appearances for Forest, including featuring in every league game during the 2025-26 season and providing four goals and four assists.
Anderson, who made his England debut in September, has started both games against Croatia and Ghana and is likely to do so again against Panama on Saturday.
The Athletic reported earlier this week that Forest had identified 20-year-old Tottenham Hotspur midfielder Lucas Bergvall as a potential replacement for Anderson.
Why is he so sought after?
Analysis by data and tactics writer Anantaajith Raghuraman
Anderson is emblematic of the modern Premier League midfielder.
He can progress play in multiple ways. His 2.8 take-ons per 90 ranked second among Premier League central and defensive midfielders (minimum 1,000 minutes) behind Tijjani Reijnders. Only three managed more passes into the opposition half than his 8.3 per 90.
Anderson took 14 per cent of Forest’s total Premier League touches in 2025-26, a higher share than any other player. The volume did not overwhelm him. He was press-resistant, often picked the right pass and was a threat in the final third, recording four goals and four assists.
Out of possession, Anderson offers tenacity and athleticism. He can push ahead and meet man-marking demands but also track back at pace to protect his defence. He blocked 1.4 opposition passes per 90, knowing when to pounce to cut out moves.
Why do City want Anderson?
Analysis by Manchester City correspondent Sam Lee
City are generally always in the market for top, English talent for obvious reasons, including homegrown regulations and the fact they are generally proven in the Premier League.
Anderson evidently fits that bill and is seen as the replacement for Bernardo Silva. Having made more touches than anybody else in the Premier League last season, for a side in Forest who are not heavy on possession, it shows how involved and influential he likes to be. He also showed with his fine goal at City in a 2-2 draw in March that he has class.
City have had some problems in recent years when trying to recruit players no better than their established stars, for example buying Kalvin Phillips and Nico Gonzalez who have, to different extents, not been the relatively cheap alternative that City were hoping for. But with Bernardo gone, City can aim for a top talent capable of going straight into the team and Anderson ticks a lot of boxes.