City revealed in a statement on their official website that the 27-year-old had completed a medical in New York, where he is currently on international duty with Spain. Navas will play for Spain at this month's FIFA Confederations Cup in Brazil and will join up with his new team-mates in time for pre-season training.
Sevilla confirmed last week that they had agreed a deal with City for the FIFA World Cup™-winning winner, and reports in the United Kingdom indicate that the Spanish side will receive an initial fee of £14.9m.
"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 City's 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.
"City have been successful in recent years and are continuing to make a great team and I'm honoured to now be part of 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."
Navas' arrival takes City's summer spending to close to £45m following the capture of Brazilian midfielder Fernandinho from Shakhtar Donetsk last week. Navas has spent his entire career to date with Sevilla and has twice won the UEFA Cup.