Reports began to surface yesterday evening that City boss Roberto Mancini had identified the England midfielder as the ideal player to boost his options in the middle of the pitch ahead of the new season.
The Toffees have now confirmed that speculation, while also revealing that the 21-year-old will undergo a medical with the Premier League champions later today.
"Everton have agreed an undisclosed fee with Manchester City for the transfer of Jack Rodwell," read a statement on the club's official website.
"The midfielder is set to undergo a medical with the Premier League champions on Sunday."
City will reportedly pay Everton a reported £15m for Rodwell.