Manchester City are reportedly on the brink of making a late January addition in the form of Porto midfielder Fernando, who has been heavily linked with Manchester United and Liverpool in the latest weeks.

The 26-year-old defensive midfielder is a pivotal player for his current club but as his contract runs out at the end of the season he is eligible to talk to foreign clubs over a possible summer free transfer.

According to Portuguese Sport TV, City have taken advantage of his contract situation to agree a cut-price deal with Porto to beat United and Liverpool by signing the player before the end of the transfer window.

The report add that Manuel Pellegrini's side have already agreed personal terms with Fernando and that the Brazilian-born midfielder is set to move to the Etihad Stadium.

Fernando has played 15 domestic league games this season, all as a starter, and although he was born in Brazil, he is keen to attract the attention of the Portuguese national team as he is eligible to represent them after over six years plying his trade in the country.

Liverpool were reported to have open talks with the Brazilian ahead of a possible move this January as Brendan Rodgers wants to strengthen the midfield and reduce his reliance on Steven Gerrard, Joe Allen and Lucas Leiva.

Meanwhile United boss David Moyes was reportedly interesting in signing Fernando to replace injury victim Michael Carrick.

Fernando's agent Antonio Araujo recently admitted interest from a number of Premier League clubs and opened the door to a January exit.

"There is a great demand from Italian clubs, but we're talking about for the future anything can happen" Araujo said.

"As I said, anything can still happen, a situation in the making. He could leave Portugal in January or at the end of the season. The one thing is that the Premier League would be a welcome destination for Fernando."