The 21-year-old midfielder is understood to be set to undergo a medical at The City of Manchester Stadium on Sunday—before discussing personal terms with the English champions.
Rodwell was widely tipped to represent either England at this summer's European Championships, or Great Britain at the Olympic Games, but missed out on both due to a recurring hamstring problem.
Everton boss David Moyes advised Rodwell to concentrate on regaining his fitness over the preseason. After overcoming that injury, City have swooped for his signature.
Rodwell rose through the Everton youth ranks, making his debut in 2008.
Having represented England at all age-group levels, he made his senior international debut as a substitute in a 1-0 victory over World and European champions Spain in November 2011. His only other cap to date came three days later in another victory over Sweden.