City stepped up their pursuit of Guehi in a deal reportedly worth £20 million after suffering an acute injury crisis at centre-half and confirmation of the move had been widely expected.
“I am really happy and incredibly proud to be a Manchester City player,” the centre-back said in a statement released by City.
“This move feels like the culmination of all the hard work I have put into my career. I am now at the best club in England and part of an unbelievable squad of players.
“It feels good to be able to say that. I want to grow as a player and a person, and I know at this club that’s going to happen.”
City director of football Hugo Viana said Guehi had been “one of the best defenders in English football for quite some time now.”
“I feel we have signed a huge talent who will help us improve,” he said. “He is only 25, but he has shown already he is a leader, a brilliant professional and someone desperate to improve.”
Guehi, who came close to joining Liverpool on transfer deadline day in September, is City’s second signing of the January transfer window after their capture of winger Antoine Semenyo from Bournemouth last week for about £65 million.
The defender captained Palace to FA Cup glory in May against City – the first major trophy in the London club’s history – and has won 26 England caps.
Other clubs reportedly interested in the defender, including Liverpool once again and Bayern Munich, were understood to be targeting a move at the end of the season, when Guehi was due to be a free agent.
Palace manager Oliver Glasner said on Friday that he understood the deal was in the final stages.
Pep Guardiola’s City are second in the Premier League, seven points behind leaders Arsenal.
Central defenders John Stones, Ruben Dias and Josko Gvardiol were all missing from Saturday’s 2-0 defeat by Manchester United at Old Trafford. (AFP)
