No transfer fee was announced by City, but Porto had issued a statement to the Portuguese Securities Market Commission (CMVM) on Wednesday evening saying a deal worth £12million had been struck between the two clubs.

“I am so happy to finally be joining Manchester City,” Fernando told City’s website.

“I know there was talk of me possibly signing last January so I am delighted that the deal has now been done and that I am a City player.”

City were strongly linked with a double deal for the 26-year-old Brazilian and his team-mate Eliaquim Mangala in January but a move did not materialise, and Fernando instead penned a new contract with Porto.

With City restricted to a net spend of £49million this summer as punishment for breaching UEFA’s Financial Fair Play regulations, a fee of £12million should offer good value.

The arrival of Fernando – City’s second signing of the summer after the free transfer of Arsenal right-back Bacary Sagna – gives City manager Manuel Pellegrini an extra midfield option in addition to Yaya Toure, Fernandinho and Javi Garcia, but pushes Jack Rodwell further down the pecking order with the 23-year-old’s City future unclear.

Fernando is currently on holiday in Brazil, but will report for pre-season training in a forthnight, City said.

“I’m looking forward to meeting my new team-mates and helping City to defend the title,” Fernando said. “It is a very exciting time to be part of this football club and I cannot wait to play in the Premier League.

“City fans can be assured I will give my all every time I play and I’m looking forward to many happy years in Manchester.

“I have enjoyed my stay with Porto and I thank the club and the fans for their support during my time in Portugal. Now I am ready for a new chapter in my career.”

Fernando moved to Porto in 2007 from Brazilian club Vila Nova, and – after a loan spell with Estrela da Amadora – went on to win the Portuguese title four times while adding two Portuguese Cups and a Europa League medal.