Manuel Pellegrini, Manchester City
Manuel Pellegrini had failed to secure Fernando's signature in January  Reuters

Manchester City have reportedly completed the signing of Porto midfielder Fernando for a transfer fee of around 12-16 million, while the Premier League Champions have also joined the race to land Barcelona's Cesc Fabregas.

City boss Manuel Pellegrini had failed to secure 26-year-old Fernando's signature in January and the midfielder had penned a new contract with the Portuguese side soon after.

This time, however, the Brazilian is reportedly heading to the blue side of Manchester after the Sky Blues managed to match Porto's asking price, according to the Metro.

Fernando, who joined Porto from Brazilian side Vila Nova for an undisclosed transfer fee in the summer of 2007, will be reportedly be heading to Manchester City to complete his medical in the coming week.

Meanwhile City have reportedly joined the race to sign Barcelona midfielder Fabregas.

The Citizens have reportedly stepped up their interest in the former Arsenal captain, who has been reportedly said he can leave at the right price, by holding talks with the Spaniard's agents, according to the Daily Star.

Though City have been handed a restricted £49m summer transfer budget by UEFA, as a punishment for breaking Financial Fair Play rules, they may still be willing to spend a significant amount to land Fabregas.

Also, Fabregas' "home grown" status will help the Citizens comply with UEFA's other restriction, where they need at least four players, who have spent some time at an English academy, in their restricted 21-man Champions League squad.

Some reports suggests City are ready to swap their Ivorian midfielder Yaya Toure, who recently threatened to quit the Etihad over the ridiculous birthday row, for Fabregas.

Although Toure expressed a desire to play for French champions Paris Saint-Germain, he may be willing to finish his career at his former club Barcelona.

Barca, who had Toure for three seasons (2007-2010), would also be happy with this deal as the 31-year-old Ivorian showed scintillating form last season, scoring 20 goals and assisting nine in the Premier League.

However, City will face some tough competition from Arsenal for Fabregas' signature this summer as the Gunners have an advantage due to the buy-back clause in the Spaniard's contract.