Manchester City have reached an agreement to sign striker Erling Haaland from Borussia Dortmund on July 1, the Premier League club said in a statement on Tuesday.
"The transfer remains subject to the Club finalising terms with the player," City said.
City did not provide financial details of the deal but German media reported that the total cost of buying Haaland in a multi-year deal could exceed 300 million euros, including his salary, agent fees and bonuses.
The 21-year-old Norway striker's value has skyrocketed thanks to his prolific form at Dortmund after joining them from Austrian side Salzburg two years ago.
Halaand scored 41 goals in as many games in all competitions last season.
Earlier in the day, Manchester City manager Pep Guardiola remained tight-lipped about the potential signing of Erling Haaland on Tuesday, saying he had been instructed not to talk until the deal is done.
Norwegian striker Haaland, 21, is one of the hottest prospects when the transfer window opens having scored 85 goals in 88 games for Dortmund since his debut in January 2020.
This season he has 21 goals in the Bundesliga from 20 starts, with Dortmund set to finish second in the league behind champions Bayern Munich when the season concludes on Saturday.
But Dortmund failed to qualify for the Champions League knockout stages, dropping to the Europa League where they did not make it past the playoffs.
British media reported on Monday that Haaland had already passed his medical and that Premier League champions City are set to activate the striker's release clause.
City did not replace Argentine striker Sergio Aguero last year when the club's all-time top scorer moved to Barcelona on a free transfer.
Brazilian striker Gabriel Jesus failed to seal his place in the starting lineup, with Guardiola often deploying a midfielder as a 'false nine' leading the attack.
Dortmund are interested in Salzburg forward Karim Adeyemi as a possible Haaland replacement.
When asked what difference a new striker would make to his squad, Guardiola said: "New players always helps to be a stronger team. But one defender or striker will not solve our defensive or scoring problems."
City lead Liverpool by three points in a closely-contested title race with three games left. They visit Wolverhampton Wanderers on Wednesday in a fixture the Spaniard described as "one of the toughest away games" in the league.
Liverpool, however, can go top later on Tuesday when they face Aston Villa but Guardiola said "nothing changes" for City no matter what the result is at Villa Park.
"Hopefully we can push them too. It happened the last four or five years," Guardiola said.
"Both teams have done impressive seasons. We know exactly what we have to do, nine points. We are going to try.
"What we have done, hopefully in future we will continue doing. It's so impressive what we have done, especially in the Premier League as everyone knows how difficult it is."