City are now expected to activate Haaland's £63 million release clause and a deal could be in place as early as next week.
A number of European heavyweights have been in the hunt for Haaland in recent months, including Real Madrid, Barcelona and Paris Saint-Germain.
Despite the release clause being public knowledge, there is said to have been a hope in Dortmund that Haaland would stay for another year.
Haaland joined Dortmund from RB Salzburg in January 2020 and has scored 82 goals in just 85 appearances for the club.
He scored twice in his last game, a 6-1 thrashing of Wolfsburg on Saturday.
The Norway international's father, Alf-Inge, spent three years at City between 2000 and 2003 and it's believed he was involved in negotiations.
City have functioned without an orthodox striker this season following the departure of club legend Sergio Aguero last summer.
Manager Pep Guardiola was keen on signing Harry Kane, but Tottenham Hotspur chairman Daniel Levy wouldn't budge on his valuation of the England captain.
Phil Foden and Gabriel Jesus are among the players to have filled the void this campaign.
Guardiola was asked about a bid for Haaland last month but remained tight-lipped.
"Since I am here, every month or two months people say we are going to sign 50 players," Guardiola told reporters per Eurosport.
"Right now, listen, It's impossible that I am going to talk about some guy who is not here. He's a Dortmund player and we've an incredible run ahead of us.
"At the end of the season it is the transfer window and many things are going to happen."
Some things are just meant to be. pic.twitter.com/2LTolGElKD— City Report (@cityreport_) April 18, 2022
City are still locked in an intense Premier League title race with Liverpool, but have missed that killer edge up front in games.
Should Haaland sign the proposed contract he'll skyrocket ahead of current highest earner Kevin De Bruyne, who is on around £385,000-per-week at the Etihad Stadium.
Do you think Erling Haaland will be a success at Manchester City?
Let us know in the comments.
Featured Image Credit: Transfers/Twitter
- Simon Jordan's Damning Rant About Player Wages As Erling Haaland 'Agrees £500k-Per-Week' Manchester City Deal
- Manchester City Have A Deal In Place To Sign Erling Haaland This Summer
- Erling Haaland is 'earning close to £900,000 per WEEK at Manchester City'
- Gabby Agbonlahor 'wants to see' Manchester City start a game without Erling Haaland up front, names replacement