Talks are already at a very advanced stage between the clubs, reports the Daily Mail, with a fee of around £18 million expected to be paid.
Hughes will therefore sign the Paraguayan for the second time after taking Santa Cruz to Ewood Park from Bayern Munich for a cut price £3.8 million just 16 months ago.
New Blackburn manager Sam Allardyce made positive noises about holding on to the player, but City’s long-standing interest and unparalleled resources after the takeover by the Abu Dhabi United Group in August, meant a deal was always likely to be struck.
Allardyce can expect a large portion of that fee to reinvest in the squad he inherited from Paul Ince as he seeks to preserve Blackburn’s Premier League status.
Personal terms are yet to be agreed but Santa Cruz’s relationship with Hughes and City’s wealth should make that a formality.
The forward has scored just three goals for Blackburn in an injury hit season and has yet to feature under Allardyce due to a calf strain.
However, with 23 goals last term, Hughes is buying proven Premier League goal scoring ability.
The chances of Santa Cruz staying at Ewood Park receded once the player admitted he would like to play for a bigger club on the eve of Allardyce’s appointment.
The 27-year-old has remaining tight-lipped this week but did tell Radio Primero de Mayo that he wanted to stay in the Premier League after rumours surfaced of interest from Real Madrid.
“I would like to stay in England,” he said.
“I like this league. It is one of the most competitive in the world.
“I have nothing to do with any offers. They are made to the club and the directors make a decision.”
Meanwhile, Hughes will return to Bayern in an attempt to sign left-back Philipp Lahm, but only if Chelsea refuse to do business over Wayne Bridge.
The England defender is Hughes’ preferred choice and an offer of around £8 million is believed to already be on the table.
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