Ilkay Gundogan will leave Borussia Dortmund for Manchester City, becoming Pep Guardiola's first signing for the Etihad side
The Germany international had long been linked with a move to the Etihad Stadium and has now inked a four-year contract with City to finalise the deal.
Gundogan is recovering from a knee injury that will likely see him miss the opening stages of the 2016-17 campaign, having also been ruled out of Euro 2016, but incoming boss Pep Guardiola has nonetheless opted to make the influential midfielder his first City signing.
"I'm thrilled to have signed for Manchester City," said Gundogan. "When I learned of City's interest my heart was set on coming here and things have moved very quickly.
"I have loved my time with Borussia Dortmund and I would like to thank the club and the supporters for the five very happy years I spent there. They gave me a platform to play on and I became a better player because of the belief, patience and trust they showed in me.
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"Now I have a new challenge and that is to achieve great things with City. The opportunity to work with a coach like Pep Guardiola is something I am really looking forward to and I am flattered to be the first signing the club has made this summer.
"I can promise the City fans I will give everything to help us win titles both in England and the Champions League. These are exciting times. I have my best years ahead of me and I think we can achieve great things together. I can't wait to begin this new chapter in my career."
The 25-year-old started his professional career with Bochum and also wore the jersey of Nurnberg before joining Dortmund in 2011.
He made over 150 appearances in all competitions for BVB, winning the double in 2011-12.
Gundogan's contract with Dortmund was due to expire in June 2017, prompting the Bundesliga side to cash in on the midfielder now in order to prevent him from leaving on a free next year.