Reports on Friday said the deal is close to being completed.
Marc Guehi, 25, was heavily linked with a move to Liverpool on the last transfer deadline day in September, but the transfer eventually fell through.
Several top clubs, including Liverpool and Bayern Munich, were also believed to be monitoring the England international with plans to move for him at the end of the season, when he was expected to be available on a free transfer.
According to Sky Sports, talks between City and Palace are now at an advanced stage.
When asked about the reported interest ahead of City’s derby clash with Manchester United, manager Pep Guardiola declined to comment, saying he had nothing to add.
Guardiola, whose side sit second in the Premier League, six points behind leaders Arsenal, admitted his team is struggling with injuries at the back.
He explained that the absence of key defenders such as John Stones, Ruben Dias and Josko Gvardiol has left City short of options.
He added that while Dias is expected to return soon, Gvardiol remains unavailable and Stones’ comeback timeline is still uncertainty.
“Without John (Stones), without Ruben (Dias), without Josko (Gvardiol), we are in a difficult situation for not one game but a long, long period.
“It’s a difficult situation. Ruben will be back soon. Josko, no. John, hopefully we’ll see,” he said.
Marc Guehi, who captained Crystal Palace to FA Cup glory in May, has made 26 appearances for the England national team.
KanyiDaily recalls that Manchester City recently strengthened their attack by signing Antoine Semenyo from Bournemouth for a reported £65 million ($87 million).
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