A fee of £8.8million has been agreed for Bianchi, who is poised to become Sven-Goran Eriksson's first signing as City boss.
The 24-year-old was the fourth-top scorer in Serie A last season with 18 goals and has been courted by several clubs across Europe.
But City appear to be in pole position after Reggina admitted a deal was close.
Reggina president Pasquale Foti said: "We have reached a preliminary agreement with Manchester City for the permanent transfer of Rolando Bianchi to the English club in a £8.8million transfer deal.
"The deal will be completed on Wednesday."
Bianchi played a key role as Reggina retained their Serie A status last season - the Calabrian team finished 14th, just one point clear of the drop zone.
Meanwhile, City have confirmed they will play two pre-season games next week in Sweden - home of new manager Sven-Goran Eriksson.
City will open their trip by playing Orgryte IS on Wednesday, July 18, in Varberg, before facing Carlstad United three days later.