"Bacary Sagna has agreed to join Manchester City after his contract with Arsenal expires on June 30," said an Arsenal statement.
"An integral part of Arsenal’s defence over the past seven seasons, the France international brought his time with the Gunners to a fitting close last month when he helped the team win the FA Cup in his final match.
"Everyone at Arsenal Football Club would like to thank Bacary for his fantastic contribution, and wish him all the best for the future."
Sagna will contest the right-back slot with established first-choice Pablo Zabaleta, widely considered to be the most consistent Premier League performer in that position for the last two years, and the Frenchman’s arrival almost certainly signals the end of Micah Richards’ career at the club.
City now have considerable strength in the full-back positions with Zabaleta and Sagna on the right and Gael Clichy and Aleksandar Kolarov, who signed a new three-year contract on Thursday.
Manager Manuel Pellegrini is still trying to bring in reinforcements for the centre of defence with Porto’s Eliaquim Magala, as well as the Portuguese side’s defensive midfielder Fernando, targets.