The Citizens brought in the Palace captain for a transfer fee of 20 million pounds (Rp. 456 billion).
"Manchester City are delighted to confirm the signing of Marc Guehi from Crystal Palace on a five-and-a-half-year contract until 2031," City wrote on their website on Monday.
The 25-year-old defender has been targeted by a number of top European clubs and almost joined Liverpool last summer.
His contract with Palace expires at the end of this season so City moved quickly to sign him.
The Chelsea academy product underwent a medical on Sunday after agreeing personal terms with Manchester City. He subsequently signed a long-term contract with the reigning Premier League champions.
