Stones has long set his sights on a move to the Etihad Stadium, and City have been frontrunners to land his signature for months.
The club have always known that they will have to part with around £50 million if they are to land their chief defensive target, meaning Everton's high valuation, which has put off other suitors, should not pose a problem.
Barcelona had identified the England centre-back as a potential target earlier this year and Manchester United had also considered entering the fray.
But Stones' desire to link up with Pep Guardiola - and, in Barca's case, his lofty pricetag - has left City as the overwhelming favourites to seal a deal.
Their chances were increased further on Tuesday when it was revealed that Stones had informed new Everton boss Ronald Koeman of his intention to join City as soon as possible.
It is understood the Blues are yet to make a formal offer, but that stance is expected to change in the coming days.
Stones is due to re-join the Toffees' squad for pre-season training next week following his participation with England at Euro 2016, where he did not see a minute of action.
And with City set to fly to Germany in the early part of the week as they kick off their series of summer friendlies, talks for Stones could now accelerate.
Having been forced to explore other options, such as Juventus' Leonardo Bonucci and, reportedly, Atletico Madrid's Lucas Hernandez, after being snubbed by Athletic centre-back Aymeric Laporte, City will not want to miss out on Stones.
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