The midfielder is likely to face England at Wembley on Tuesday, with his agents working hard behind the scenes to secure an agreement with his club.
Fernandinho is out of contract next summer but it's understood the finer details have been worked out in the last few days on a new 12-month extension, with the option to extend that further if the two parties are still happy with the arrangement.
The 32-year-old, however, has had to be pragmatic on the wages front, with his £100,000 per week basic salary being tweaked down, although the samba ace can earn higher sums if he helps Pep Guardiola's side be successful on the trophies front.
Fernandinho has been instrumental this season in helping the Citizens establish an eight-point lead at the top of the Premier League table, in addition to them remaining the only unbeaten side left in English football.
It's understood Guardiola has had a big personal say in the player getting a new deal and has been impressed by the Brazilian's attitude towards now meeting the club's paymasters halfway, putting his career before a lucrative free transfer somewhere else.