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Leon Bailey | Image Source: Getty Images
According to British media, City bidded a record £100 million ($139 million) for Villa's 25-year-old captain.
Jamaican attacker Bailey, 23, could be seen as a direct playmaking replacement for Grealish.
"Aston Villa and Bayer Leverkusen have reached an agreement for the transfer of Leon Bailey subject to the player completing a medical and finalising personal terms," Villa said in a statement.
Villa start their Premier League season at Watford on August 14.
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