City have stepped up their pursuit of Guehi in a deal reportedly worth £20 million ($27 million) after suffering an acute injury crisis at centre-half.
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Guehi, who came close to joining Liverpool on transfer deadline day in September, would become City’s second signing of the January transfer window after their capture of winger Antoine Semenyo from Bournemouth last week for about £65 million.
The 25-year-old captained Palace to FA Cup success in May against City — the first major trophy in the south London club’s history — and has won 26 England caps.
Other clubs reportedly interested in the defender, including Liverpool once again and Bayern Munich, were understood to be targeting a move at the end of the season, when Guehi was due to be a free agent.
“Latest understanding, the deal with Marc is in the final stages,” Glasner said on the eve of Palace’s Premier League match at Sunderland.
“We can’t confirm, but it is not done. The result is Marc doesn’t play tomorrow for us.”
The Palace boss added: “When the players want to move on, a deal will happen. It looks like it has happened now.
“Everyone wanted Marc to stay forever. I talked to him, of course, it stays between us. Marc showed it in the summer transfer window, showed it the whole autumn that he was 100 percent committed to the team and to Crystal Palace.
“I wish him all the best for the rest of his career. He is still at the beginning of his great career. He is a fantastic guy.”
City manager Pep Guardiola stressed he had “nothing to say” about the potential transfer at his own press conference ahead of his side’s match at Manchester United.
The club are currently without senior centre-backs John Stones, Ruben Dias and Josko Gvardiol due to injury, while Nathan Ake has struggled to play more than once a week due to fitness issues.
Guardiola, whose team are second in the Premier League, six points behind Arsenal, said the club were “in a difficult situation for not one game but a long, long period”, adding: “Ruben will be back soon. Josko, no. John, hopefully we’ll see.”
City are also still challenging for silverware in the Champions League, FA Cup and League Cup.
Glasner also said Friday he would leave Palace when his own contract expired at the end of the season.