Pep Guardiola has finished making his first acquisition of the summer as City gears ready for the next campaign.
Mateo Kovacic left Chelsea for Manchester City in a move for up to $38 million.
Journalist for sports Fabrizio Romano said Chelsea would earn a set price of £25 million plus $5 million in add-ons.
The Croatian midfielder has made the decision to sign a deal that runs until June 2027.
In an effort to keep their season-long treble, Guardiola is working with his squad.
Guardiola is reportedly interested in acquiring Declan Rice from Manchester City.
West Ham United turned down Manchester City's first offer of £80 million plus $10 million in add-ons earlier today.
According to reports, Declan Rice would cost West Ham United 100 million pounds plus add-ons.
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