The 25-year-old, who was close to joining Liverpool last year, has penned a five-and-a-half-year contract at the Etihad Stadium after the clubs agreed a £20million fee.

He is City’s second signing of the January transfer window following their £62.5million capture of winger Antoine Semenyo from Bournemouth.

It is understood City had been monitoring Guehi for some time and were considering a move in the summer, when he would have been a free agent. They decided to act this month after being hit by a defensive injury crisis.

Guehi had been linked with a number of clubs and is pleased the speculation over his future can now end.

“It’s a relief,” he said. “I’m very proud and very excited to get started. I’m very grateful to God.

“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.

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

Guehi’s arrival continues a rebuild of Pep Guardiola’s squad that began with the signing of four players last year and included six further additions in the summer.

The former Chelsea youth player is not eligible to play in Tuesday’s Champions League clash at Bodo/Glimt but can be registered later in the competition. He could make his debut against Wolves in the Premier League on Saturday.

Guehi, who has 26 England caps, captained Palace as they won the FA Cup last season, the first major trophy in their history.

He joined the Eagles from Chelsea in 2021 after a successful loan spell with Swansea.

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Reflecting on his time at Selhurst Park, he said: “It’s hard to put it into words. Being from south London and playing for a south London club, I can understand how the fans see the club and what it means to them.

“Palace means a lot to me – a big part of my life and will forever be a big part of my life now. I’m eternally grateful to them because without them I wouldn’t be here.

“I’m grateful to the fans and every single person at the football club.”

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Liverpool had been expected to move again for the player after their previous bid collapsed on deadline day but City emerged as his likely destination last week and formalities were completed over the weekend.

City are currently without centre-backs John Stones, Josko Gvardiol and Ruben Dias because of injury while Nathan Ake has struggled to play more than once a week due to fitness issues.

The inexperienced pair of Abdukodir Khusanov and Max Alleyne, aged 21 and 20 respectively, have started the last four games but Guehi’s availability will increase Guardiola’s options.

Guardiola acknowledged the benefits to his side both immediately and in the long term.

Speaking at a press conference in Norway, the City boss said: “Another top central defender, plays for the national team. I know how much he was wanted.

“He comes at the perfect age for many years and can play right or left but, with the problem that we have at the back in the next few months, it’s really important he’s here.”