Yan Couto will join Braga on a year-long loan deal, pending a medical.
The Brazilian right-back has been on Celtic's radar for some time and was a guest of the club's at Parkhead as he watched the Hoops beat Jablonec 3-0 in Europa League qualifying.
However the Manchester City defender has put an end to all speculation and agreed a move to Portugal to play his football in the Primeira Liga.
Celtic wanted the 19-year-old in their ranks as they see him as a top prospect and the player was believed to be keen on a switch.
However his representative, Marcelo Robalinho at Think Ball agency, managed to broker a loan move for him at Braga who have also been tracking him for months.
Herald and Times Sport understands he will undergo a medical this week.
Meanwhile Celtic have turned their attentions to Josip Juranovic.
They submitted an official bid of around £2million to Legia Warsaw which was turfed out, but sources in Poland tell Herald and Times Sport they are confident a deal can still be done between the clubs.
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