Talks are expected to begin within the next two days as Roberto Mancini bids to secure the services of the Argentine striker, who has become a priority for the club after Carlos Tevez announced his desire to leave.
"Aguero is young and can start to score a lot. He will become a stop striker," Mancini said of Aguero. "He is 23 and now is his time."
Real Madrid and Juventus had previously been linked with the Atletico star, but City are in pole position and Aguero is believed to be keen on a move to Eastlands.