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The 26-year-old Donnarumma has become unnecessary for PSG, the winners of Ligue 1 and the Champions League, after the acquisition of Lucas Chevalier from Lille in August.
With his contract expiring at the conclusion of this season, he is now on the verge of transferring to City for a fee of 35 million euros (£30.3m) ahead of the Monday 19:00 BST deadline.
City brought in James Trafford from Burnley during the summer for £27 million, and he has commenced the season as the starting goalkeeper, but sources have informed BBC Sport that manager Pep Guardiola is now pursuing Donnarumma, with expectations that the transfer will soon be finalized.
Considered one of the top goalkeepers globally, Donnarumma has earned 74 caps for the Italian national team and played a crucial role in their penalty shootout win against England during the Euro 2020 final.
Ederson, the Brazilian goalkeeper, had served as City's primary choice since 2017 until the present season, but an agreement has been reached between the clubs for his transfer to Fenerbahce for £12.1 million (14 million euros).
The 32-year-old won six Premier League titles along with the Champions League and FA Cup after his transfer from Benfica for £35 million, but he has yet to make an appearance this season.
City currently has four senior goalkeepers, and sources close to Stefan Ortega have indicated to BBC Sport that the German goalkeeper intends to leave City today. The club also signed Marcus Bettinelli from Chelsea in the summer.
Guardiola's squad kicked off the season with a 4-0 win over Wolves, but they have faced consecutive losses in the Premier League to Tottenham and Brighton since then.
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