Claudio Ranieri has described influential midfielder as a 'fantastic player and a fantastic man'.
The Chile international signs a four-year deal at the Etihad Stadium.
The centre-back is a reported transfer target of Manchester United.
Schalke have ruled themselves out of summer move for 24-year-old.
Portuguese boss offered him to double his wages with a €10m a year contract.
England international recently expressed his frustration at being played on the wing.
Catalans are waiting to sign a replacement to sanction the departure.
Both players sustained injuries during second half of Tuesday's EFL Cup win over Burton Albion.
Lucas Perez scored 17 goals and provided 10 assists for Deportivo last season.
Catalans pay €13m plus a further €2m in add-ons.
The 21-year-old will reunite with ex-Spurs teammate Benjamin Stambouli at Veltins-Arena.
The Welsh international will miss opening 2018 World Cup qualifier against Moldova in Cardiff.
The Champions League draw will take place at 5pm BST on 25 August, Thursday.
The 23-year-old limped out of United's Community Shield win over Leicester.
Hammers have opened talks with London rivals over signing Remy on a season-long loan.
The 17-time grand slam champion is set to team up with Rafael Nadal at the inaugural Laver Cup next year.
Former Manchester City striker has been told he has no future at Anfield.
Lewis Hamilton holds a 19-point advantage over Nico Rosberg in the Drivers' championship.
Daniel Sturridge is not keen to play on the wings and wants a regular No 9 role.
Pique says he will fondly follow Manchester City this season.
Solo called the Sweden team 'cowards' for playing defensive football against the USA.
Calhanoglu scored 8 goals and provided 11 assists in 46 appearances last season.
Alaba has ruled out joining Pep Guardiola's Manchester City this summer.
Eduaro says playing for a big club is once in a lifetime opportunity.
Omer Toprak is open to the idea of leaving Bayer Leverkusen this summer.
Europe's biggest clubs brace for the group stage draw as the road to Cardiff begins in earnest.
The Premier League's heavweight sides enter as the newly branded competition reaches the last-32.
The Surrey right-hander struck an eye-catching half-century against Pakistan.
Andres Iniesta and Jeremy Mathieu remained out.
Hammers are looking to bolster the attack following the injuries to Andy Carroll and Andre Ayew.