Regarded as one of the best young talents in world football, the 21-year-old joined the Bundesliga side from RB Salzburg midway through the 2019-20 season.

Dortmund immediately moved to conclude the acquisition of Germany striker Karim Adeyemi on a five-year contract from Austrian champions RB Salzburg.

Dortmund said Adeyemi completed his medical earlier on Tuesday. The fee has been estimated at EUR30-

EUR40 million ($A45-60 million).

Haaland's long-anticipated move to City was confirmed in a statement from City.

It read: "Manchester City can confirm we have reached an agreement in principle with Borussia Dortmund for the transfer of striker Erling Haaland to the club on July 1 2022.

"The transfer remains subject to the club finalising terms with the player."

City did not provide financial details but German media reported the total cost of buying Haaland in a multi-year deal could exceed EUR300 million ($A450 million), including his salary, agent fees and bonuses. The release clause itself is thought to be EUR60million ($A90 million).

Haaland has scored 85 goals in 88 games for Dortmund since his debut in January 2020. He was last season's top scorer in the Champions League as well as the UEFA Nations League.

This season he has 21 goals in the Bundesliga from 20 starts, with Dortmund set to finish second in the league behind champions Bayern Munich when the season concludes on Saturday.

Australian Associated Press