City have pursued the defender all summer and have reportedly had bids of £15m and £18m rejected as Everton were relectant to let the England centre half go.
But with the Toffees expected to sign Phillipe Senderos from Arsenal, their stance over Lescott has been weakened and the Swiss international has been deemed a replacment for the man signed from Wolves for £5m.
The signing of Lescott may bring an end to Mark Hughes' summer spending spree with the manager shelling out around £100m or so on new talent.