Fiorentina officials travelled to Manchester to finalise the deal on Thursday, before the Montenegro striker arrived a day later to undergo medical tests.
Jovetic becomes Manuel Pellegrini's fourth signing of the summer after Jesus Navas, Fernandinho and Alvaro Negredo to take the club's transfer window spending up to over €100 million.
The 23-year-old will now help Sergio Aguero and Edin Dzeko in the attack.
Arsenal and Juventus had been interested in Jovetic earlier this summer, but had been unable to agree a fee with the Viola.
The 23-year-old forward completed a switch to the Etihad Stadium on Friday, with City piecing together a transfer package which lured Fiorentina into a sale.
Putting pen to paper with City saw Jovetic bring to a close a transfer saga which had dragged on for the best part of a year.
He was first linked with a move to England in 2012, with City, Arsenal and Chelsea among those said to be keen on acquiring his services.
The Blues refused to give up in their pursuit of the Montenegro international and those efforts have been rewarded with the capture of one of European football's hottest properties.
"It was a long time they wanted me, last year also, and I stayed with Fiorentina," Jovetic told the club's official website.
"They wanted me more than everyone and I decided to come here. They are fighting for the Premier League and also for the Champions League, and this is the reason I came here."
Jovetic has also set himself a goal target for his debut Premier League campaign, and is confident he can slip seamlessly into whichever system City coach Manuel Pellegrini decides to adopt.
He added: "I hope (for) about 15-20 in all competitions.
"I have played in a lot of systems. I can play as a striker, behind the striker or on the left."
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