The Montenegrin attacker has been linked with a move away from the Stadio Artemio Franchi throughout the close-season following an excellent Serie A campaign last term.
Jovetic, 23, scored 13 goals in 34 appearances for Fiorentina in 2012-13.
He is set to become City's fourth signing of the transfer window, joining Fernandinho, Jesus Navas and Alvaro Negredo after Fiorentina revealed that they had reached an agreement with the Premier League club.
"(Fiorentina has) reached an agreement with Manchester City Football Club for the outright sale of Stevan Jovetic," a post on the club's Twitter account read.
The news comes just a day after Sevilla confirmed that striker Negredo would also be moving to the Etihad Stadium, with new manager Manuel Pellegrini eager to boost the club's forward line as City aim to reclaim the Premier League title they lost to neighbours Manchester United last season.
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