The 29-year-old England international has accepted Everton's proposal for a season-long arrangement, with formalities expected to conclude shortly. City's willingness to subsidise a portion of Grealish's substantial £300,000 weekly salary has smoothed negotiations between the clubs.
Fabrizio Romano reports the medical examination has been arranged, suggesting the deal's completion is imminent rather than speculative.
Grealish's situation at the Etihad has deteriorated markedly. Pep Guardiola's decision to omit him from City's Club World Cup travelling party sent a clear message about his standing in the squad hierarchy. The manager has essentially sanctioned his departure, opening the door for interested parties.
The Birmingham-born player's motivation extends beyond regular football. With the 2026 World Cup approaching, Grealish recognises his international prospects depend heavily on consistent club performances. His England place has become increasingly precarious following limited opportunities under Guardiola last term.
Several clubs across Europe have registered interest. Bayern Munich remain keen observers, whilst Newcastle United have explored possibilities, though Eddie Howe's reluctance to pursue loan arrangements may complicate any potential move to Tyneside.
Everton's financial constraints made City's wage contribution essential. Without such assistance, few Premier League clubs could accommodate Grealish's earnings within their existing structures.
The transfer would represent a dramatic shift for a player who commanded Britain's most expensive fee when arriving from Aston Villa for £100 million three summers ago. During his City spell, Grealish collected three Premier League medals and the Champions League, though his individual impact often frustrated supporters and pundits alike.
His decline became particularly evident last season. Seven Premier League starts told their own story, whilst being overlooked completely for the FA Cup final against Crystal Palace highlighted his peripheral status. Despite accumulating 94 top-flight appearances across three campaigns, Grealish never established himself as indispensable under Guardiola's system.