Torres is keen on a move to the Etihad Stadium and Valencia are resigned to losing the 20-year-old, who has entered the final year of his contract.
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The Spain under-21 winger is valued at around £40 million and sources close to the player expect a decision on his future to be made in August.
As well as Torres, director of football Txiki Begiristain is also targeting at least one new centre-back ahead of next season.
City's summer recruitment has been made more simple after their two-year European ban was overturned by the Court of Arbitration for Sport but privately club bosses insist it does not mean there will be a blank cheque for new players.
Meanwhile, City are expected to organise a friendly to prepare for their Champions League round-of-16 second leg with Real Madrid on Aug. 7.
Guardiola has opted to keep his players in Manchester rather than granting them time off following the end of the Premier League season.
The friendly is set to take place behind closed doors in the build up to the clash with the newly-crowned Spanish champions.