The European champions will pay an initial £15.5 million for the Spain Under-21 attacking midfielder with a further £6.5m payable in add-ons depending on the players success at the Bernabeu.
It now seems that only Foden, who recently signed an extended deal with his boyhood club, will be a regular for the Premier League champions in the years to come.
City have added a 40% sell-on clause if Real Madrid sell Diaz to Manchester United in the future.
After the medical examination to be held tomorrow, Monday 7 January, the player will be presented at 1:30 pm in the honor box of the Santiago Bernabéu stadium. Sources told ESPN FC that he had grown frustrated at his lack of first-team opportunities.
Trade negotiations with China going well
Apple's warning, its first since 2002, deepened concerns about the Chinese economy, which had been showing signs of stress. That helps banks, as higher interest rates allow them to make bigger profits on mortgages and other loans.
Bryce Harper To Nationals Still Possible, Phillies To Meet With Right-Fielder
Bruce Levine of 670 The Score quickly responded by saying the Sox were unlikely to offer more than seven years to either player. That could then leave the door open for the Nationals to make a similar offer to the one they reportedly made in September.
Malaysia's royal council meets after king's surprise resignation
Permatang Pauh MP Nurul Izzah Anwar thanked Sultan Muhammad V for giving a full pardon to her father, Datuk Seri Anwar Ibrahim. His abdication is a first for Malaysia since the country gained independence from the United Kingdom more than 60 years ago.
City have also negotiated a very interesting clause that impacts Manchester United.
The Spanish under-21 global is set to sign a six-and-a-half-year deal with the La Liga club ahead of completing a move worth £15.5 million, with the potential for a further £6.5m in add-ons.
He moved to the Premier League from Malaga in 2013 but has struggled to establish himself in City's first team, having made just three League Cup starts in this campaign.
Back in the noughties, Real Madrid was a club that issued its intent to rival clubs across Europe by acquiring services of world's best players for world-record money.
Santiago Solari's side are now fifth in La Liga and 10 points behind leaders Barcelona following a 2-0 defeat to Real Sociedad on Sunday.