Manchester City have made their second signing of the summer after agreeing a £12 million fee for Porto midfielder Fernando.
The Portuguese club confirmed on Wednesday that the Brazilian would be moving to the Premier League champions in a statement to the Portuguese Securities Market Commission.
"FC Porto hereby informs the market that it has reached an agreement with Manchester City for the permanent transfer of professional footballer Fernando Reges for 15million euros," it read.
City had been close to signing the 26-year-old defensive midfielder in January but the deal eventually stalled.
The deal had become an important piece of business for City while James Milner's future at the club remains uncertain.
However, with City being forced by Uefa to name at least five home-grown players in next season's Champions League squad after its Financial Fair Play infringements, Milner could be retained as part of the quota.
City also looked to bolster a midfield that could be without Yaya Toure for almost a month next season during the Africa Cup of Nations, which starts in January.
Fernando becomes City's second signing of the summer after Manuel Pellegrini recruited full-back Bacary Sagna from Arsenal on a free transfer.
The announcement came as Atlético Madrid were reportedly preparing a bid for striker Alvaro Negredo.
The Spaniard moved to the Etihad for £20m last season, scoring 23 goals, but faces a battle to start ahead of Sergio Aguero and Edin Dzeko.
Fernando - fact file
Height: Six foot
Position: Defensive midfielder
Honours: UEFA Europa League: 2010–11, Primeira Liga: 2008–09, 2010–11, 2011–12, 2012–13, Portuguese Cup: 2009–10, 2010–11, Portuguese SuperCup: 2009, 2010, 2011, 2012, 2013