Van Dijk is expected to leave Southampton with the Premier League elite all determined to snap him up.
Liverpool's need is arguably greatest with Reds boss Jurgen Klopp keen to bolster his backline after a Premier League campaign that saw them ship 42 goals from 38 games.
Chelsea, however, are also weighing up a move following their decision to cut club captain John Terry loose this summer.
But the Mirror say that Van Dijk has chosen to snub both Klopp and Antonio Conte in order to join Manchester City instead.
Top 10 defenders in the Premier League based on stats Sat, June 3, 2017
Click to reveal the top 10 defenders in the Premier League this season based on WhoScored overall stat ratings
Play slideshow Getty Images 1 of 10
10. Joel Matip – 7.18
Southampton star Virgil van Dijk will reportedly join Manchester City this summer
Manchester City look set to beat Chelsea and Liverpool to Virgil van Dijk
The 25-year-old will reportedly seal a £60million move to the Etihad when the transfer window reopens next month, becoming their second summer signing after the capture of Monaco's Bernardo Silva.
It is said that the sheer size of City's offer has persuaded the Holland international to choose a move to Pep Guardiola's team.
Van Dijk will reportedly earn wages of £200,000-a-week and become the world's most expensive defender in the process.
The £60m gazumps both the £50m Paris Saint-Germain paid Chelsea for David Luiz and the £47m City spent on John Stones last summer.
Get Quotes on Home Insurance
Manchester City boss Pep Guardiola appears to have won the battle for Virgil van Dijk's signature
Van Dijk was impressed by the project Klopp is building at Liverpool but the dizzying figures City are willing to offer have reportedly turned his head.
He also rejected Chelsea – thinking that with Luiz, Gary Cahill and Cesar Azpilicueta in the team – he would have a better chance of securing first-team football elsewhere.
It looks to be a case of one in one out with City prepared to listen to offers for Nolito.
The 30-year-old arrived from Celta Vigo 12 months ago but, after making just nine league starts, now looks destined to return to Spain.