City are confident of securing Toure's transfer from Arsenal by the end of this week, in a move which would take manager Mark Hughes' spending this summer close to the £100million mark.

With City also reportedly set to make an improved offer to Everton for another central defender, Joleon Lescott, talks with Arsenal are continuing - and Gunners manager Arsene Wenger has conceded the Ivory Coast defender may be leaving north London.

It is understood City are very optimistic of wrapping up a deal for the 28-year-old.

Hughes has already spent £80.5million - including £25million on Emmanuel Adebayor from Arsenal as well as the costly signings of Roque Santa Cruz, Carlos Tevez and Gareth Barry.

Wenger has insisted, however, that a deal for Toure - who played for Arsenal on Monday night in a pre-season friendly in Hungary - is not definite.

The manager told Arsenal TV: "We will see what's happening in the next 24 hours - nothing is decided yet.

"We have seven centre-backs, and I am in the position where I have to play some in midfield. But of course, Kolo is a very good player - and we will see what will happen in the next 24 hours."

City's spending could see them in direct competition with Arsenal for a Champions League place next season.

So far, Wenger has made just one signing - central defender Thomas Vermaelen from Ajax - but he hinted there will more arrivals before the transfer window closes.

Wenger added: "I am more focused on getting everybody fit for the start of the season. But we are looking at opportunities as well - there are still some pre-season games to see what we really need.

"When the time comes we will do something."