Sinclair, who represented Team GB at the 2012 Olympics, said this summer that he would not sign a new contract at the Liberty Stadium and was looking to leave.
Swansea rejected a £6.2million offer from Premier League champions City on Tuesday. However, a restructured offer of £6.2 million with add-ons that could see the fee rise to over £8 million has now been accepted.
Sinclair, 23, will now head to Manchester to undergo a medical and hold talks over personal terms ahead of Friday's transfer deadline.
Want-away Sinclair came on as a substitute and scored in Swansea's opening day 5-0 destruction of QPR a Loftus Road, but was omitted from Michael Laudrup's squad as the Swans followed that up with a 3-0 cruise against West Ham.
Reports suggest Swansea chairman Huw Jenkins has already reinvested the money from the sale of the former Chelsea winger in Spain international Pablo Hernandez, after agreeing a fee of around £5.5 million with Valencia.
Hernandez had spoken of his desire to be reunited with Laudrup, who he worked under at Getafe.
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