Al-Ittihad have verbally agreed a €60million (£50.5million) package including add-ons with Aston Villa for Moussa Diaby.
As reported by Fabrizio Romano, the winger has agreed a five-year deal with the Saudi Arabian side.
The deal is very close to being finalised, with Diaby set to leave Villa after just one year at the club.
Al-Ittihad are also targeting Ederson and have contacted Manchester City about the goalkeeper.
City, who value Ederson at around £50million, have already rejected an offer of £25million from Al-Nassr.
Al-Ittihad have verbally agreed a €60million package including add-ons with Aston Villa for Moussa Diaby
The Saudi-Arabian club have also approached Manchester City over goalkeeper Ederson
Al-Ittihad recently appointed ex-Man United defender Laurent Blanc as their manager
Diaby, who previously played for Paris Saint-German, joined Villa from Bayer Leverkusen last year for a club-record fee of £51.9million.
Last season Diaby made 54 appearances for Villa across all competitions and scored ten goals, while he provided nine assists.
Al-Ittihad already have star names Karim Benzema, N'Golo Kante and Fabinho in their squad, while Houssem Aouar recently joined from Roma.
They have also been linked with a move for Kevin De Bruyne and have reportedly agreed personal terms with the City midfielder but it is expected that the Belgium international will remain with the Premier League champions.
Al-Ittihad recently appointed former Manchester United defender Laurent Blanc as their new manager.