Bayern Munich have agreed a fee of £54.8m with Manchester City for Leroy Sane, with the German set to sign a five-year deal at the club.
The Bundesliga champions will pay an initial fee of £44.7m (€49m) with a series of performance and trophy-related add-ons.
These could lead to an additional £10m (€11m) for trophies won such as Bundesliga and Champions League titles as well as personal awards for the player himself.
City will also take 10 per cent of any profit made by the German club should they sell Sane in the future.
It is also believed the winger will double the wages he was being offered by City to stay at the club with Bayern set to pay the player around £20m per year.