Manchester City have confirmed the signing of Kalvin Phillips from Leeds, who have moved swiftly to replace the England midfielder with RB Leipzig’s Tyler Adams.

Phillips has joined City for £42m plus add-ons on a six-year contract and Leeds have agreed to pay up to £20m, including add-ons, for Adams. The US international is due to travel to England for a medical.

Related: Men’s transfer window summer 2022 – all deals from Europe’s top five leagues

Phillips, who has spent his whole career at Leeds, is effectively the replacement for Fernandinho, who has left after nine years and returned to his native Brazil, joining Athletico Paranaense.

Phillips is City’s third summer signing, after the forward Erling Haaland and the goalkeeper Stefan Ortega. The manager, Pep Guardiola, next hopes to bring in Brighton’s left-back Marc Cucurella. The 22-year-old forward Julián Álvarez has also joined the squad after signing in January but staying at River Plate on loan.

Phillips described his move as a “dream come true” and told City’s website: “To be able to play under Pep and learn from him and his coaching staff as well as be part of such a fantastic squad is a prospect that I am incredibly excited about.”

Leeds moved for Adams after being urged to do so by Jesse Marsch, who managed his fellow American at Leipzig last year. Last season the 23-year-old Adams started 12 Bundesliga games and five matches in Europe – three in the Champions League and two in the Europa League. Last month Leeds have signed another defensive midfielder, Marc Roca, from Bayern Munich.

Leeds are also closing in on a deal for the Feyenoord winger Luís Sinisterra and are ready to pay the biggest fee received by the Dutch club. Personal terms have been agreed with Sinisterra, a 23-year-old Colombia international.

The Club Brugge midfielder Charles De Ketelaere is also a Leeds target but they would need to see off interest from Milan to secure the 21-year-old Belgian. A younger midfielder, 18-year-old Darko Gyabi, moved to Elland Road on Monday from City on a four-year deal.

Phillips, who will wear City’s No 4 shirt, paid tribute to the Leeds supporters in a farewell social media post. The 26-year-old wrote: “I hope you guys understand my decision and will accept that I only want to chase my dreams and test myself against and with the best teams and best players on the planet. As a young kid I had so many dreams and still do … but playing for you was the one I will never forget. You are the best fans in the world.”

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On Monday Arsenal completed the signing of the forward Gabriel Jesus from City for £45m.

City owners, City Football Group, have made Palermo the 11th club fully under the CFG banner after acquiring a majority stake in the Sicilian side, who won promotion to Serie B last season. They join City, New York City, Melbourne City, Yokohama F Marinos, Montevideo City Torque, Girona, Sichuan Jiuniu, Mumbai City, Lommel SK and Troyes. There is also a partner club, Club Bolivar.