Martin Petrov has become Sven-Goran Eriksson's fourth signing after moving to City from Atletico Madrid.
The Bulgarian winger has passed a medical at City's Carrington training ground and moves to the club on a three-year contract for a fee of £4.7million, subject to a work permit.
The 28-year-old started his career with CSKA Sofia and has subsequently impressed at Servette of Switzerland, the Bundesliga's VfL Wolfsburg and most recently at Atletico.
Capped more than 60 times by his country, Petrov is a crucial part of Bulgaria's attempt to qualify for next year's European Championships, which at the moment sees them in second place in Group G.
Petrov's blistering pace and eye for goal is sure to give City boss Sven-Goran Eriksson options on the left flank, a position that has proved difficult to fill for the Blues over the last few seasons.
City Chief Executive Alistair Mackintosh says: "Unsurprisingly given the calibre of the player, there were a significant number of clubs competing for Martin's signature, and I am absolutely delighted that he has come to Manchester City.
"Having Sven-Goran Eriksson as our manager proved to be a major factor in the player's decision to move here."