The Spain international's transfer from Sevilla has been officially confirmed by the defeated FA Cup finalist, becoming the club's second signing of the summer after Fernandinho.
Sevilla announced the transfer last week, but City has now rubber-stamped a deal which sees Navas move to the Etihad Stadium for a fee of 25 million euros.
The 27-year-old, who has signed a five-year deal, is delighted to have moved to the Premier League runner-up and is eager to show what he can do in England.
“Manchester City is an exciting project and this is the right moment for me to take this step. I'm very happy with the opportunity and the decision," Navas told the club's official website. “The Premier League is a competition where the football is very fast and will suit the way I play. I'm really looking forward to it.
“I'm going to a great club in England and I want to continue developing my game there. The Club has put a lot of faith in me and I want to repay them out on the pitch.”
The Spaniard joins Fernandinho in making the move to Man City, and will be given a short holiday following the Confederations Cup before linking up with the rest of the squad for preseason training.