Estadi Cornellà-El Prat and Eastlands clubs will join forces as Roque Santa Cruz heads for Spain.
Manchester City and Espanyol will announce a mutually-beneficial partnership deal that includes player trading and joint financial projects.
The exact details of the agreement are yet to be decided upon but a general acknowledgement to work together has been reached.
A City player, believed to be Roque Santa Cruz, is expected to move to the La Liga club in the summer with a friendly also on the cards.
According to Spanish media the Blues have been searching for a club in Spain to begin a partnership with and seem to have settled for Espanyol.
The Premier League side want to extract coaching and youth development information as Espanyol’s set-up has been successful in recent years.
Their first team is scattered with fantastic potential ranging between 17 and 24. The star is Carlos Clerc, who has attracted interest from Real Madrid.
City also want to offer their players the chance to learn and play abroad and hope this opportunity will appeal to many aspiring youngsters.
Espanyol are insisting on having first-choice on any players leaving Eastlands, either on-loan or permanently with the Blues having the same option.
Manager Roberto Mancini could also use the Spanish club for players who have work permit problems and to allow youngsters to gain first-team experience.