The Premier League runners-up have confirmed that they have recruited the sought-after Montenegro striker, who had been linked with Arsenal and Juventus earlier in the summer
Goal reported on July 11 that City were closing in on the Montengero international and Sevilla striker Alvaro Negredo, who signed earlier on Friday.
Fiorentina officials travelled to Manchester to finalise the deal on Thursday, before the Montenegro striker arrived a day later to undergo medical tests.
Jovetic becomes Manuel Pellegrini's fourth signing of the summer after Jesus Navas, Fernandinho and Negredo to take the club's transfer window spending up to £90 million.
The 23-year-old will now help Sergio Aguero and Edin Dzeko fill the attacking void left by Mario Balotelli and, most recently, Carlos Tevez.
Arsenal and Juventus had been interested in Jovetic earlier this summer, but had been unable to agree a fee with la Viola.
Jovetic has represented Montenegro 27 times, scoring 10 goals.