Nolito could join Manchester City as early as this week, according to Sky sources.
Talks over a deal for the Celta Vigo forward have been stepped up since Spain were eliminated from Euro 2016 on Monday.
And it is understood Nolito could travel to Manchester in the coming days to finalise a reunion with his old Barcelona manager Pep Guardiola.
Guardiola gave Nolito a first-team debut, but the player was largely used by Barcelona's 'B' team before moving on to Benfica.
The 29-year-old returned home to join Celta in 2013 and won a first international cap the following year.
Twelve goals in La Liga last season helped secure a spot in France, where he featured in all four of Spain's games and scored in a 3-0 win over Turkey.
City have already recruited Ilkay Gundogan this summer ahead of Guardiola's arrival and are also interested in the midfielder's former Borussia Dortmund team-mate Pierre-Emerick Aubameyang.