The Brazilian goalkeeper was pictured at the Premier League club’s training ground on Tuesday, with a medical due to be undertaken.
Goal revealed on Saturday that a big-money transfer was reaching a conclusion after several months of work.
Benfica, though, have been quick to point out that an agreement with City has not been pushed through.
A statement from the Portuguese champions read: “Sport Lisboa e Benfica - Futebol, SAD hereby informs, under the terms and for the purpose of the provisions of article 248 of the Code of Securities, that it is in negotiations with Manchester City for the transfer of the rights of the athlete Ederson Moraes, which have not yet been completed.”
Once a deal is completed, the 23-year-old will become the most expensive goalkeeper in world football.
Juventus legend Gianluigi Buffon holds that honour at present, but his £33m transfer in 2001 is set to be eclipsed.
Ederson will join fellow City new boy Bernardo Silva at the Etihad Stadium, with Pep Guardiola having already splashed out £43m on the midfielder.