Benfica have confirmed they have agreed a £65m deal to sell Ruben Dias to Manchester City.
The Portuguese club also confirmed they will get Nicolas Otamendi from the former Premier League champions.
The deal for Dias is worth an initial £62m, with a further £3m subject to add-ons.
It comes hours after Pep Guardiola’s men suffered a 5-2 home defeat to Leicester City.
In the statement, Benfica clarified they had agreed a separate fee of 15m euros (£13.6m) to sign Otamendi.
Both deals were subject to personal terms being finalised.
Guardiola has been seeking a right-sided centre-back since Vincent Kompany left last year.
Dias has impressed during three seasons at Benfica and was in Portugal’s 2018 World Cup squad.
The 23-year-old scored in Benfica’s 2-0 win over Moreinense on Saturday, after which he was pictured hugging Benfica’s sporting director, Rui Costa.