Begiristain, formerly a technical director at Barcelona for seven years, will replace Brian Marwood in overseeing player recruitment at the Etihad Stadium after he took up a new post as managing director of the club's football academy.
The 48-year-old was responsible for the signings of Ronaldinho, Samuel Eto'o, Thierry Henry and David Villa during his time at the Camp Nou, while he also maintained the club's youth setup that saw players such as Sergio Busquets break into the first team.
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And the remit for Begiristain will be to provide a similar level of success in the transfer market, following complaints from manager Roberto Mancini during the summer window, and the Spaniard is relishing the prospect of building an exciting long-term philosophy at City and working alongside former Barca colleague and new chief executive Ferran Soriano.
"I'm satisfied with this exciting chance I have been given," Begiristain told Sport. "Manchester City's development and their successes in the pitch are obvious. I feel honoured I can be a part of the future successes.
"I'm excited about the possibility of working with Marwood, Mancini and Soriano. We just want to build a team and a philosophy which can succeed not only at a short-term, but also at a long-term."