Goal.com exclusively revealed that City had agreed an £18 million fee for the 25-year-oldafter Roberto Mancini missed out on other central midfield targets Daniele De Rossi, who stayed at Roma, and Javi Martinez, who joined Bayern Munich.
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The former Real Madrid man is set to face his former club with City, when they travel to the Bernabeu in two weeks' time for their first Champions League fixture this season.
The Spaniard admitted that with Dutch and German champions Ajax and Borussia Dortmund making up the group, his new team-mates face a big task in progressing, but insisted that as one best teams in Europe they can compete with anyone.
He told reporters: "Without a doubt, I'm at the biggest club in England and one of the biggest in Europe.
"So I'm very proud but also aware that I'm joining a great side full of top players.
"The Champions League group is a tough one but it’ll be a lot of fun.
"The Real Madrid game is a great way to start out but we have the team and players to compete against any opposition."
Mancini's men will play a Premier League clash with Stoke City on September 15 in their next match after the international break, before facing the Spanish champions in their opening group game of this year's competition for Europe's elite three days later.