Manchester City have agreed an undisclosed fee with West Ham for England goalkeeper David James.
Kevin Keegan has been searching for another goalkeeper because former England number one David Seaman has been troubled by injuries and Nicky Weaver is on the long-term casualty list.
James, who attended a meeting with the FA in Manchester on behalf of the England players yesterday, was reportedly at City's training ground today and is set for a medical tomorrow.
A statement from West Ham said: "David has been given permission to discuss personal terms with Kevin Keegan and, providing they are concluded the deal will be finalised without delay."
West Ham manager Alan Pardew explained the reason for allowing James to leave.
"While you never like to see a player of David's quality leave your club this is a move which, when you look at the bigger picture, is suitable for all parties," Pardew said.
"From our point of view, and I feel sure our supporters will understand this, we had to bring in some revenue to reinvest in the playing staff before it was too late.
"The sale is in no way is a reflection of David's ability or character - don't forget I made him captain recently - but it was a case of prioritising.
"The fact is that the money from this transfer will fund the acquisition of players that I feel will increase our chances of promotion at the first attempt - and that is the sole reasoning behind my agreeing to it. "
James joined West Ham in July 2001 from Aston Villa for £3.2m and made 102 league and cup appearances.