Sagna has been with Arsenal since joining the club from Auxerre in 2007 but with his contract running out on June 30 has announced his intention to leave north London.
Manchester City are believed to have had a deal sewn up for the Arsenal man for some time, and according to the Mirror the Citizens will wait until his deal with the Gunners expires before officially confirming the switch.
The paper also adds that Manchester City will finalise a deal worth £12 million plus £4 million in add-ons for Porto midfielder Fernando. The 26-year-old old was close to joining Manuel Pellegrini's side in January only for the move to fall through - however he is expected in Manchester in the coming days to sign an agreement and complete a medical.
With Sagna on his way to the north west, Arsenal are likely to step up their search to land a replacement.
The leading candidate for Arsenal boss Arsene Wenger appears to be Ivory Coast international Serge Aurier. Liverpool have also been linked with the £7 million.