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Guehi, whose contract at Selhurst Park was due to expire at the end of the season, has put pen to paper on a five-and-a-half-year deal with Pep Guardiola's side. 

The 25 year-old was linked with several top European clubs, and almost joined Liverpool last summer, but has chosen to link up with the Citizens. 

He made the move to Selhurst Park in 2021 from Chelsea and went on to make 188 appearances in all competitions, scoring 11 goals and providing seven assists. 

Guehi also played a crucial role in the Eagles' FA Cup success, captaining the side to a 1-0 win over his new team to seal the Eagles' first-ever major trophy. 

"I am really happy and incredibly proud to be a Manchester City player," Guehi said. "This move feels like the culmination of all the hard work I have put into my career.

"I am now at the best club in England and part of an unbelievable squad of players. It feels good to be able to say that.  

"I want to grow as a player and a person, and I know at this club that’s going to happen.  

"I love football – it has given me so much for so long – and to be able to continue my development at Manchester City is a really special moment for me and my family.

"I absolutely cannot wait to get started now. I want to meet my team-mates, train hard, understand what the manager expects of me and then show the City fans what I can do."

Guehi's arrival strengthens Guardiola's centre-back options, with both Josko Gvardiol and Ruben Dias sidelined after sustaining injuries earlier this month. 

The England international has become City's second January arrival, following Antoine Semenyo, who joined for a reported £62.5m fee, through the Etihad Stadium doors. 

He will seamlessly slot into City's style of play, with his 908 successful passes in the Premier League, more than any other player for Palace in 2025-26, while that total would put him fifth in the Citizens' squad, behind Bernardo Silva (909), Nico Gonzalez (1,006), Matheus Nunes (1,111) and Dias (1,303). 

Guehi's departure brings an end to a whirlwind few days for the Eagles, who had manager Oliver Glasner announce he would be leaving at the end of the season.

The Austrian also seemed to take aim at the club's hierarchy, suggesting they had "abandoned" the team after their 2-1 defeat to Sunderland, though reports suggest he will remain in his position despite that.

City are in Champions League action on Wednesday away to Bodo/Glimt, though it is yet to be seen whether Guehi could make his debut for the club in Norway.