City have long since agreed personal terms with Walker and, barring any late and unforeseen mishaps, the deal should be finalised before Pep Guardiola takes his squad to the United States for pre-season on Monday.
Goal reported on Wednesday that Spurs had made it clear that they would hold out for £50 million for Walker, after City failed in their pursuit of Dani Alves.
It is understood that City and Spurs wrapped up the deal on Thursday morning.
The Blues had been utterly convinced that Alves would be moving to the Etihad Stadium having agreed personal terms several weeks ago.
But a last-minute change of heart saw him move to Paris Saint-Germain. At his unveiling on Wednesday he apologised for Guardiola and City.
Spurs looked to take advantage of the situation and force City to meet their demands after weeks of negotiations.
They informed Blues director of football Txiki Begirisitain that they would not sell for anything less than £50m, or at least a deal that would surpass £50m were it to include a number of achievable add-ons.
It appears that City's desire, or indeed desperation, to bring in reinforcements at full-back before they fly to America on Monday has led to a deal being pushed through.
Sources close to City's decision makers have previously told Goal that dealing with Spurs chairman Daniel Levy had been incredibly frustrating, but they are now content that they have finally reached a breakthrough.
City agreed personal terms with Walker and indeed most of their targets this summer some time ago.
Talks are ongoing for Monaco left-back Benjamin Mendy and City are hopeful they can also conclude a deal for the France international before Monday, though his current club leave for their pre-season camp on Thursday afternoon.
City have been confident of signing Mendy for some time, and although they have so far been unable to find a breakthrough with Monaco after weeks of wrangling, there is a sense that a conclusion is near.
The French club have been holding out for £40m and though City had been hoping to lower that price they are now ready to do as they have done with Walker and get the deal over the line as soon as possible.
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