Man City sign Cherki in time for Club World Cup
Cherki, 21, joins a new-look City, seeking to bounce back after a dismal trophyless season for Pep Guardiola's men, for a fee of 36.5 million euros ($41 million, £30.3 million) plus an extra six million euros in add-ons.
"This is a dream for me," Cherki said in a City statement.
"To be joining a club like Manchester City and have the opportunity to make the next step in my career here is something very, very special.
"I have worked so hard for this all my life. I love this sport, and I can't wait to develop further here in Manchester with Pep and his backroom staff.
"Everyone knows how good City are – they have been so successful for many years now. The responsibility to help the team continue winning is something I want to embrace."
Cherki joins Rayan Ait-Nouri, who joined City from Wolves on Monday, as new signings for the Club World Cup, while a deal for AC Milan midfielder Tijjani Reijnders is expected to be completed before Tuesday's deadline.
City will face Moroccan side Wydad AC and Emirati club Al Ain before a clash of European heavyweights with Juventus in the group stage, which kicks off on June 14.
They also spent more than £172 million in January on Omar Marmoush, Abdukodir Khusanov, Vitor Reis and Nico Gonzalez.
A product of the Lyon youth academy, Cherki made his debut at 16 and became the club's youngest ever scorer in 2020.
In total he scored 29 goals in 185 appearances for his boyhood club, including two in two games against City's rivals Manchester United in a remarkable Europa League quarter-final this season, won 7-6 on aggregate by the Red Devils.
Cherki made his senior international debut last week, scoring and assisting in France's 5-4 Nations League semi-final defeat to Spain.
"There's no doubt that he's now in the best place possible to develop further under Pep's guidance and I really believe he can become a world-class player with our support and direction," said City director of football Hugo Viana.