Jason Denayer has completed a permanent switch to Lyon on a four-year deal for a reported €10 million (£9m/$12m) fee.
The 23-year-old Belgium defender has impressed at international level and during his loan spells away from the Etihad Stadium but has failed to establish himself under Pep Guardiola at City.
Denayer graduated from the City academy but leaves without making a single first-team appearance for the club, instead spending time on loan at Celtic, Sunderland and Galatasaray.
Widespread reports suggested a permanent switch to Gala was on the cards, with Denayer then confirming to beIN SPORTS that he would be open to a Turkish Super Lig return, saying: "If an offer comes in from Galatasaray, ‘why not?’ I say."
However, Denayer revealed at the end of the season that a move to Lyon would be his preference, though City were keen to send him on loan to sister-club Girona.
"Man City are not keen on selling me," Denayer said in the summer. "Or are only against unreasonable terms for potential buyers: a buy-back clause for almost the same price as the selling price.
"That means that clubs aren't keen on signing me permanently and prefer to take me on loan. I've nothing against a new loan deal, but I want to choose my destination. Lyon would be the perfect place for me. An ambitious club in an attractive league.
"The club and I had already reached a personal agreement, but City are vetoing a move and are pushing me to Girona… we'll see what'll happen in the coming weeks. If the situation is not resolved, I will go to Girona, but not heartily."
The move to France has now been announced by City, however, ending a five-year association with the club.
Belgian outlet Het Laatste Nieuws reports that a €10m fee will be paid by the Ligue 1 side, with Denayer to be paid €2m-a-year in wages.
City announced the deal via Twitter, saying: "Best of luck to @Jasondenayer who has today joined Lyon on a permanent deal."
Lyon ended the 2017-19 Ligue 1 campaign in third place, behind only Paris Saint-Germain and Monaco, qualifying for the Champions League this term.