Pep Guardiola has agreed a three-year contract to become Manchester City manager in the summer.
The 45-year-old, currently in charge at Bayern Munich, will replace Manuel Pellegrini, who will leave on 30 June.
A statement from City said Chilean Pellegrini, 62, was “fully supportive” of the announcement being made.
The club said negotiations with former Barcelona coach Guardiola had been “a re-commencement of discussions that were curtailed in 2012”.
At the time, Roberto Mancini was in charge and he led City to the domestic title in the same year.
Pellegrini succeeded Mancini in 2013 and took the club to a Premier League and League Cup double the following season.
He has won 64 of his 99 Premier League games as a manager, a record only eclipsed by Jose Mourinho, who won 73 of his opening 99 league games as Chelsea boss.
City could yet win four trophies under Pellegrini this season.
They are already through to the final of the League Cup and are second in the league behind Leicester City.
The Blues are also through to the knockout stages of the Champions League and will play Chelsea in the fifth round of the FA Cup.
Why City went for Pep
Barcelona’s most successful manager with 14 trophies in four years, including three La Liga titles and two Champions Leagues.
Took a year’s break before joining Bayern in 2013, following the club’s Champions League, Bundesliga and German Cup treble under Jupp Heynckes.
Won the league twice in his two full seasons with Bayern, who are eight points clear in his third campaign. He is yet to win the Champions League with the German club and has been knocked out at the semi-final stage twice.
They face Italian giants Juventus in the last 16 of Europe’s elite club competition in February and Guardiola said: “Winning the Champions League would make my time here complete.”
Former City winger Trevor Sinclair said news of Guardiola’s appointment was “a massive, massive statement” by the club and “huge news for all City fans”.
He told BBC Radio 5 live: “He’s the hottest manager out there. Every club would want him.
“And when you look at the recruitment possibilities now, that’s where you really start to get excited. He’ll be able to bring in some huge players.”