Midfielder Ryan Fenech is to join Valletta after a deal agreed with Hamrun Spartans this morning.
Both Valletta and Floriana both declared interest in the Malta international.
It is understood that Fenech has indicated his desire to join City after the Premier League leaders made him their no.1 transfer target.
It is understood that as part of the deal, Massimo Grima's loan to Hamrun would be extended by another year.
Valletta winger Dyson Falzon will also join Ħamrun on loan for the remainder of the season.
With the end of the winter transfer window fast approaching, Valletta have also intensified their efforts to bring in a foreign striker.
Andrade Anderson Antunes, a 29-year-old Brazilian who last played for Brujas FC in Costa Rica, is due to arrive in Malta tonight with a view of joining Valletta until the end of the season.
A few weeks ago, speculation was rife that Valletta had set their sights on Camilo, who scored 24 league goals for Qormi last season. The latter were also said to be interested in re-signing Camilo, who recently ended his contract with South Korean club Gyeongnam FC, but the Brazilian is set to continue his career in the US after agreeing a move to MLS Canadian-based outfit Toronto FC.
Meanwhile, Ħamrun are widely expected to stand by coach Stephen D’Amato despite the team’s negative run of late. Rumours that D’Amato was heading for the exit intensified last weekend after Ħamrun suffered a third consecutive league defeat, 0-2 to Birkirkara.
Danilo Doncic, the former Floriana coach who recently terminated his contract as assistant coach of Greek side Kavala, was mentioned as the leading candidate to take over at Ħamrun but the indications are that the Spartans have given D’Amato a vote of confidence.