The report says the Portugal international will sign a three-year contract for newly promoted Dalian, and is due to travel to Asia on Monday to complete his exit from West Ham.
Fonte, who turned 34 last month, has been listed three times as an unused substitute during that period and was reportedly made available for sale in the January window.
Slaven Bilic signed the central defender for £8m. Led by Spanish coach Juan Ramon Lopez Caro, Dalian are reinforcing their squad with European players ahead of their CSL campaign, which begins next week. It is understood that Fonte’s new contract is worth €4m a year, after tax.