The 28-year-old has been with Arsenal since 2002 but failed to hold down a regular starting place last season, according to the BBC. Newspaper reports that Toure has agreed personal terms with City are premature but the deal is expected to be completed by the end of this week.

The report said Toure played for Arsenal on Monday night in a pre-season friendly in Hungary, but Gunners boss Arsene Wenger said: "We will see what's happening in the next 24 hours, nothing is decided yet. We have seven centre-backs and I am in the position where I have to play some in midfield but of course Kolo is a very good player and we will see what will happen in the next 24 hours."

Toure has played 326 games for the Gunners, scoring 14 goals, and has two years left on his contract at the Emirates Stadium. He handed in a transfer request in January, which was rejected by the Arsenal board.

As well as missing out on Terry, Hughes had a £15m bid for Everton defender Joleon Lescott rejected earlier this month. But the Gunners, who have already sold striker Emmanuel Adebayor to City for £25m this summer, have been more receptive to offers from the oil-rich Eastlands club.

On top of capturing Adebayor, City have already brought in former Manchester United forward Carlos Tevez, midfielder Gareth Barry from Aston Villa and striker Roque Santa Cruz from Blackburn for a total of about £55m this summer.