However, City are yet to open talks with the Hammers about a fee for the Brazil international.
City were targeting Paqueta last summer before the move was suspended as the midfielder became subject of a betting probe by Brazilian authorities.
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Foot Mercato says City were willing to pay 86m for Paqueta and now have agreed personal terms with the player over a long-term agreement.
It's suggested West Ham may demand more than what was settled over 18 months ago.