City were forced to act quickly in the goalkeeping market after current number one Ederson reiterated his desire to leave the club.
He has received an official offer from Galatasaray, and negotiations between the two clubs are ongoing.
The Brazilian nearly departed last summer, attracting interest from Saudi Arabia, but was persuaded by Guardiola to stay for another season.
Man City found Ederson's replacement
Manchester City have reached an agreement to sign Burnley goalkeeper James Trafford, according to Italian journalist Fabrizio Romano, via Sportal.
City had hoped to negotiate a lower fee, but the newly promoted Premier League side held firm, meaning City will pay Trafford's full £40 million release clause.
Trafford has reportedly spoken personally with Pep Guardiola and agreed to the move. He also informed Newcastle, who were also interested in his services, of his decision to return to Manchester.
The goalkeeper is a product of City's academy, where he played until 2023 before being sold to Burnley.