Raheem Sterling became the most expensive English footballer in history when he signed for Manchester City from Liverpool on a five-year contract, the England forward's new club announced on Wednesday (AEST).
The 20-year-old completed his move to the 2014 Premier League champions after passing a medical in a deal worth an initial 44 million pounds but could rise to 49 million ($103 million).
The forecast move away from Anfield appeared imminent at the weekend as Sterling stayed behind when Liverpool flew out for their tour of Thailand, Australia and Malaysia.
City manager Manuel Pellegrini rated his marquee signing as "one of the best attacking players in world football".
"He is a young player with outstanding ability, and I am sure the Manchester City fans will be very excited about seeing him in action for the team," Pellegrini said.
A statement released on City's official website said the 20-year-old England international's transfer is a club record fee for an English player and he also becomes City's record signing.
The Jamaican-born Londoner assumes the most expensive English footballer mantle from Andy Carroll, who moved from Newcastle to Liverpool for 35 million pounds but never lived up to the tag.
Sterling, who will wear the number seven shirt, is now second only to Welshman Gareth Bale on the all-time most expensive British player chart.
The headline capture brings the curtain down on a long-running transfer saga involving the England international who was under contract at Liverpool until 2017.
But he had rejected a 100,000 pound a week deal to extend his stay at Liverpool, with the Reds finally accepting City's third bid of the close season.
Sterling joined Liverpool from Queens Park Rangers in February 2010 for an initial fee of 600,000, pounds and the Loftus Road club will receive 20 per cent of his fee.
Sterling's arrival follows the lifting of financial fair-play sanctions by UEFA against City, freeing the club's Abu Dhabi stakeholders of their financial shackles.
Aside from Sterling, City's other main targets this summer are Belgian star Kevin de Bruyne, at German Bundesliga runners-up VfL Wolfsburg and Juventus' French midfielder Paul Pogba.
Sterling will now fly out to meet up with his new team-mates on tour in Australia within the next 24 hours.
News of his departure from Anfield was also confirmed by Liverpool in an announcement on their official website.
"Liverpool Football Club can confirm Raheem Sterling has completed a transfer to Manchester City," the Liverpool website said.
"The 20-year-old departs Anfield after 129 appearances and 23 goals for the Reds. Liverpool FC wishes Raheem well."