Sane, 20, has been tracked by Guardiola all summer but a £42m move finally appears to be gathering pace.
Real Madrid and Bayern Munich were linked with moves earlier in the summer but are believed to have cooled their interest.
Sane scored eight goals and provided six assists in the Bundesliga last season and impressed enough to be called into the Germany squad.
He made just one appearance at Euro 2016, as a substitute in the 2-0 semi-final defeat to France, and now has four caps.
GETTY
Leroy Sane is pushing for a move to Manchester City
The former Barcelona and Bayern Munich boss has already signed Ilkay Gundogan, Nolito, Alexander Zinchenko, and Aaron Mooy as he looks to improve the squad after taking over from Manuel Pellegrini.
Guardiola has run the rule over the defence and is keen to land two new signings this summer with fears over Vincent Kompany's fitness.
Yesterday it was reported that Bonucci was closing in on a £50m move to City and Stones is understood to have told Everton he wants to leave.
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