According to reports in Italy, a ?31million feel has been agreed with Inter Milan and the player will sign a ?5m-a-year deal.
Sneijder was named in the starting line-up against AC Milan in Beijing for what could be his final appearance for the Serie A club in the Super Cup.
England bound: Wesley Sneijder is reportedly set to join Manchester City
Until now the Dutchman had been heavily linked with a move to Old Trafford with United desperately seeking a replacement for Paul Scholes.
But the club seemed unwilling to match the Champions League winner's salary demands and City have swooped instead.
The news will add extra spice to the derby clash in the Community Shield at Wembley on Sunday.
Report: The Italian press broke the story about Sneijder moving to City
The deal could also include Carlos Tevezmoving in the opposite direction, possibly on loan initially with a view to a permanent deal.
United boss Sir Alex Ferguson claimed on Friday that his opposite number Roberto Mancini will have to win trophies to have overall control at the Etihad Stadium.
Ferguson said: 'Time does that for you and success, too. It depends on the type of club you have. At United I have been fortunate. They know the most important person at the club is the manager.'
Reunited: Sneijder played against City in the Dublin Cuper Cup last weekend
The signing of Sneijder will go a long way to reducing the gap between the two Manchester sides as well as fulfilling Mancini's wish for his side to be more prolific in front of goal.
He said: 'We need to score 10 or 15 goals more than last season.'
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