England midfielder Steve McManaman has completed his medical and signed a two-year deal with English Premiership side Manchester City, the club confirmed.
The 31-year-old former Liverpool player is now on his way back to Madrid before returning to City on Tuesday when he will join in his first training session with his new team-mates.
"I am very excited at this move," McManamen told Man City's website. "It was not a difficult decision to make as I know a lot of the players here.
"I have worked with Kevin Keegan before and am really looking forward to working with him again. Manchester City is an exciting place to be and they are a team which is really on the up."
The midfielder has been given the squad number 20 and is in line for his first appearance in a City shirt against Aston Villa on Sunday week.
"I am absolutely delighted with this signing," said manager Keegan.
"In my opinion Steve is a world class player who won't be fazed on the big stage. He has the ability to cover a lot of positions and will always do it to the best of his ability.
"The most pleasing thing for me is the desire he showed to come here knowing that he gave up a lot to do so. He knows a lot of people here and has everybody's total respect and I know that he will fit in here within ten minutes."
McManaman moved to Real Madrid on a free transfer when his Liverpool contract expired in 1999. He was only occasionally in the Real first-team but the arrival of Manchester United's David Beckham has squeezed him out.
The 37-times capped playmaker was keen to fight for his place at the Bernabeu but Real have agreed to release him on a free transfer to shed his three million pound (4.7m dollar) salary.
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