The Aston Villa captain was due to undergo a medical at City on July 11 ahead of an £8 million move but had a last-minute change of heart.
Delph subsequently issued a statement in which he appeared to commit his future to the club, saying: I'm not leaving. I'm staying at the football club and I can't wait for the start of the season and captaining this great football club."
But the 25-year-old is understood to have changed his mind yet again, having been given assurances that his England chances would not be affected by a potential lack of playing time at City, and will now sign a four-year, £100,000-a-week deal.
Delph's influence helped Villa to pull clear of relegation last season and reach the FA Cup final, in which they were beaten by Arsenal.
Manager Tim Sherwood paid tribute to his loyalty after he turned down City but the midfielder now looks set to join Raheem Sterling in linking up with Manuel Pellegrini's side this summer.
source: goal
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