Man City Accept Thug Fee
Stuart Pearce confirmed the bid has been accepted and the player is now discussing personal terms.
The Man City board are pleased to get rid of the hot head after the bad press coverage the club received for his disgusting challenge on Portsmouth's Pedro Mendes.
Manchester City boss Stuart Pearce said he wanted to strengthen other areas of his squad with the money from any sales in the January transfer window.
'The finance we can gain from Ben going can be invested in other positions - I believe I have enough cover to cope in his absence,' said Pearce.
Thatcher has slipped down the pecking order at Eastlands this season with Stephen Jordan establishing himself as first choice at left-back.
The former Wales international started his career at Millwall and has since had spells at Wimbledon, Tottenham, Leicester and Manchester City.
Thatcher has made 51 appearances for City since joining them in 2004.