Pep Guardiola made full-backs his top transfer priority in the close season having released Pablo Zabaleta, Gael Clichy and Bacary Sagna, and Brazilian international Danilo is on the verge of joining Kyle Walker as City's latest recruit in that position.
The deal for the 26-year-old is expected to cost the Premier League side around £26 million ($33.7 million, 29.3 million euros), and with Walker signed in a transfer which could rise to £54 million, that would take City's spending on full-backs alone past the £80 million mark.
Danilo, who joined European champions Real in 2015 from Porto, started just 17 Spanish league games last season with Dani Carvajal often preferred in the right-back role.
The Spanish international started ahead of Danilo in the Champions League final in Cardiff as Real Madrid beat Juventus 4-1 to lift their 12th European Cup.
Chelsea are also believed to be keen on securing the Brazilian's signature, but City -- who are also chasing Monaco full-back Benjamin Mendy -- remain favourites to complete a deal.
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