Manchester City have agreed to pay Wolves €55m (£47.25m) for midfielder Matheus Nunes. As part of negotiations with City, Wolves have sealed a season-long loan move for Tommy Doyle, who impressed last season on loan at Sheffield United.

The clubs have inserted an option for Doyle to sign permanently for a cut-price fee of €5m. City could help pay for the deal by sanctioning the sale of the homegrown talent Cole Palmer, who is wanted by Chelsea.

Related: Nottingham Forest edge closer to signing Chelsea’s Callum Hudson-Odoi

Last year, Pep Guardiola described Nunes as “one of the best players in the world” and City had an opening offer for Nunes worth up to £47m rejected but Wolves have reluctantly agreed to sell after the Premier League champions offered more cash up front. Chelsea have had a £35m bid for Palmer rejected but remain interested in signing the City forward.

Nunes was swiftly identified by City as a priority target after Kevin De Bruyne underwent hamstring surgery this month. Nunes, who joined from Sporting in a club-record £42m deal last summer, has not reported for Wolves training since Sunday and made clear his wish to leave.

Nunes’s expected sale would allow Wolves, who have been hamstrung by financial fair play constraints that led to Julen Lopetegui’s departure, to strengthen. They are close to announcing the €10m arrival of the Girona centre-back Santiago Bueno, their first signing this summer for whom they will have paid a fee. Wolves turned to the 24-year-old Uruguay international to bolster their centre-back options after the sales of the defenders Nathan Collins, Conor Coady and Dion Sanderson.

Aston Villa are closing on the loan signing of the Barcelona defender Clément Lenglet. The 28-year-old centre-back, who spent last season on loan at Tottenham, will provide cover for Tyrone Mings who sustained an anterior cruciate ligament injury that makes it unlikely he will play again this season.