Jesus, who is currently with the Brazil squad at the Rio Olympics, joins City on a five-year deal but will be loaned back to Palmeiras until January.

City reportedly beat off competition from Barcelona to sign a player who has been on the radar of top European clubs since he scored 54 goals in 48 games in his debut season in Palmeiras' youth set-up.

Jesus made his senior bow just before his 18th birthday and was part of the Brazil Under-20 side which reached the final of the FIFA U20 World Cup in 2015.

Sao Paulo-born Jesus was named in Brazil's 40-man provisional Copa America squad this summer before being selected for his country's Olympic bid on home soil.

"We are delighted that Gabriel has chosen to join us," City director of football Txiki Begiristain said in a club statement.

"He is one of the most exciting young prospects in world football and plays the game in a spectacular way.

"We look forward to him making a big impact at Manchester City in January."

For his part, Jesus - who can play anywhere across the front three and was voted the Brazilian top-flight's 'best newcomer' last term - said he was excited to be coming to England and working with former Barcelona and Bayern Munich boss Guardiola.

"Manchester City is one of the best clubs in the world so I'm really pleased to sign," said Jesus.

"We have many great talents in the team and a fantastic manager in Pep Guardiola that I can learn so much from.

"I'm looking forward to showing the City fans what I can do and I think we'll have a great future together!"

The signing of Jesus came a day after City completed a £37m deal for Germany winger Leroy Sane from Schalke, currently the biggest Premier League transfer in the summer window.

Guardiola's has now spent around £103m with Nolito, Ilkay Gundogan and Oleksandr Zinchenko also brought in this summer.

And there could still be more to follow, with Everton's John Stones and Marlos Moreno of Colombian side Atletico Nacional continuing to be heavily linked with the Etihad Stadium outfit.

Meanwhile, midfielder Gundogan - signed from Borussia Dortmund and working his way back from a knee injury - has set his sights on making his City debut in the derby clash with Manchester United at Old Trafford on September 10.

"I'm really looking forward to training normally with the guys and I can't wait to get going properly - but I just have to be patient for a little while longer," Gundogan told City's official website.

"I'm working hard on my rehab (and) everything is going well so I hope it will be end of August or the beginning of September - of course, it all depends on how things develop over the next few days and weeks.

"Maybe just after the World Cup qualifiers and perhaps the Manchester derby - that would be very nice."