Benfica have reached agreement with Manchester City for the sale of Portugal defender Ruben Dias, with Nicolas Otamendi heading the other way.
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The Portuguese club announced Dias will join City for a $A112 million with Argentinian centre-back Otamendi moving in the opposite direction for ($A25 million).
Both deals are subject to the agreement of personal terms at their prospective clubs.
Dias, 23, will become City's second defensive signing of the summer after bringing in Nathan Ake from Bournemouth in a deal worth an $A72 million in August.
The club hope the arrivals will address the perceived major weakness in manager Pep Guardiola's squad last season.
City had long been linked with Napoli's Kalidou Koulibaly but moved their attention elsewhere due to the Italian club's asking price.
Otamendi, 32, is set to move on after a five-year spell at City in which he won seven major honours, including two Premier League titles.
Australian Associated Press