Shakhtar Donetsk chief executive Sergei Palkin has confirmed that Fred will complete a transfer to Manchester this summer.
Fred has attracted strong interest from both Manchester United and Manchester City over the last six months and the 25-year-old looked to be edging towards a move to the Etihad.
Reports last month suggested that City had agreed a £45million deal for Fred, with the Brazil international set to join up with his new team-mates at the end of the 2017/18 campaign.
However, according to Shakhtar chief Palkin, Jose Mourinho’s Red Devils still have a realistic shot at landing the midfielder.
‘Fred will leave in June. If not to Manchester City, then to Manchester United,’ Palkin told Corriere dello Sport.
‘He is ready for the best championships.
‘In addition to being very good, Fred is very professional.’
Fred replaced Fernandinho when he joined Shakhtar back in 2013 and his former manager predicted last month that he will follow his compatriot to City.
‘Shakhtar Donetsk’s best player is Fred in the centre of midfield,’ Mircea Lucescu said.
‘He was a bit anarchic on the left. I moved him in front of the defence,
‘He will go to City like Fernandinho before him.’