According to Daily Star, Etihad may soon have Valdes playing as a part of the team as his tenure with Barcelona ends with this season.
Valdes was expected to become part of French team Monaco as a free agent starting this summer, the report said.
However, as the deadline to sign a binding pre-contract with them has passed, speculations are that Valdes may join City after the season ends.
City has not made any public statement about Valdes but they are reportedly confident of signing him.
Valdes' move to City is bound to put pressure on current England keeper Joe Hart who, after a shaky spell, recently managed to enter Manuel Pellegrini's good books. (ANI )