The 18-year-old is set to join City for a reported ã86million fee, with a fixed ã81.3m being paid immediately plus ã4.3m in add-ons, making him the most expensive teenage signing in Premier League history.
Bouaddi impressed for Morocco during their 2026 FIFA World Cup run that ended in the quarterfinals in a 2-0 loss to France, leading to him attracting the attention of numerous sides in Europe.
He will become the second midfield signing for the Citizens during the summer transfer window following the club's record ã116million acquisition of England international Elliot Anderson from Nottingham Forest.
City have been linked with Chelsea star Enzo Fernandez and Roma's Manu Kone as they look to bolster a midfield that has seen Rodri, Bernardo Silva and Tijjani Reijnders leave the club.
Bouaddi has made 96 appearances in the French top-flight since graduating from their youth ranks, providing four assists and helping Lille to a third placed finish last season.