The Clarets are backing boss Vincent Kompany to strengthen his squad after he guided them back to the Premier League at the first time of asking.
Kompany now wants to raid his former club for shot-stopper Trafford, who is currently starring for England’s Under-21s in the European Under-21 Championship.
The talks between the two clubs have reached an advanced stage and the deal could be worth up to £19m for Manchester City.
An initial £12m would be due from Burnley to sign Trafford, signalling how highly the Clarets rate the custodian.
The 20-year-old goalkeeper was on loan in League One at Bolton Wanderers last term and Burnley were impressed with what they saw.
Trafford progressed through the youth set-up at Manchester City, but has not made a senior team appearance for the Cityzens.
He has had a loan stint at Accrington Stanley and two at Bolton, while a move to Burnley will ensure the custodian remains in the north west.