| Last updated
The Aston Villa skipper had been earmarked as a top target by Pep Guardiola, who instructed his club to activate Grealish's release clause.
Villa had been keen to tie him down to a new deal and were willing to offer him a higher salary than what he would earn at City.
But Grealish ultimately elected to join City in pursuit of trophies and has signed a six-year contract. He put pen to paper at the City Football Academy on Thursday and completed his medical.
Grealish becomes City's second signing of the summer following third-choice goalkeeper Scott Carson's free transfer. He takes the No.10 shirt vacated by record goalscorer Sergio Aguero.
"I am incredibly happy to have joined Manchester City," Grealish told mancity.com.
"City are the best team in the country with a manager considered to be the best in the world - it's a dream come true to be part of this club.
"Over the past 10 seasons, they have won major trophies consistently. Pep coming here has taken them to the next level and the football this team plays is the most exciting in Europe. To play for Pep and learn from him is going to be special and it's something any top footballer would want.
"The facilities are amazing, and I honestly can't wait to get started, meet everyone and get playing."
Guardiola has regularly waxed lyrical about Grealish and described him as "an exceptional player", while Kevin De Bruyne has admitted to talking to teammates about him.
The Belgium midfielder is Grealish's "favourite ever player" and he will now play alongside him in a wonderfully creative City midfield.
Reports say Guardiola is planning on playing Grealish in the number 8 role, rotating him with Ilkay Gundogan.
After joining boyhood club Villa at the age of six, Grealish went on to make over 200 appearances and scored 32 times.
He led them back into the Premier League and his impressive performances at club level prompted Gareth Southgate to bring him into the England fold.
The 25-year-old has now been capped 12 times for England and was part of the side that reached the Euro 2020 final in the summer.
The third Villa skipper to move to the Etihad Stadium in 12 years, Grealish could mark his debut with a trophy in Saturday's Community Shield against Leicester City on Saturday.
Chosen for YouChosen for You
Most Read StoriesMost Read