Pep Guardiola's side have agreed an initial £40million deal with the Cherries - who were relegated to the Championship on the final day of the season - and which could rise to £41m.
Confirmation of the Dutch centre-back's arrival comes just a day after City announced their first deal of the summer transfer window in the form of Valencia winger Ferran Torres.
Sportsmail exclusively revealed last week that the Premier League runners-up were on the brink of swooping for Ake having had a bid accepted on Thursday.
The Holland international has since undergone a medical and also agreed personal terms with City.
Ake is expected to have signed a five-year contract and net a major pay increase on his current £40,000-per-week contract.
Chelsea had first refusal on Ake, a clause which could have been activated with a £40million bid.
But the Blues failed to move which paved the way for City to agree a fee which will see Bournemouth net a guaranteed £40million, with the remaining £1million made up of add-ons and bonuses.
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