Manchester City have signed Germany international Leroy Sane from Schalke for an undisclosed fee.
Sane, 20, has been Pep Guardiola's top attacking target this summer, and the new City boss has secured him on a five-year deal.
An ESPN FC source has revealed that City will pay £37m, with reports that performance-related add-ons could eventually take the total cost up to £46.5m.
Sane could make his City debut in the preseason friendly against Arsenal in Gothenburg on Sunday.
He has been capped four times by Germany and is considered to be one of the most exciting young prospects in Europe.
"I feel really good, I'm happy to be here and happy that it has all worked out," Sane told Man City's official website. "Now I can settle here in Manchester and play for City.
It's time to #WelcomeLeroy to City! MORE ➡️ https://t.co/6njzfmEfqR https://t.co/fRn0Nk6pLY
- Manchester City (@ManCity) August 2, 2016
"One of the reasons I decided to join City was Pep Guardiola; he convinced me to come here and that I can continue to progress. I know I will learn a lot under him, and now I can take the next step in my career.
"I followed Pep at Barcelona and at Bayern, where he achieved a lot and worked really well with young players.
"I think he can make me a more complete player. I think I will need a bit of time to start with because it's another league and there's a different style of play, but I think I can adapt very quickly."
Guardiola said that Sane is a "special talent."
"He has great technical ability, is comfortable on the ball and there is much to admire about the way he plays football," Guardiola said.
"He is fast, enjoys creating chances for others, works hard for the team and scores goals, too. He also has a very positive attitude and will fit in well with our squad.
"At 20, he is still developing as a player, but he is already a member of the German national side and I think he will be a fantastic asset to our club. We are very happy he decided to join us."
Sane had made it clear that he wanted to leave Schalke in the summer, according to the club's general manager, Christian Heidel. Bayern Munich and Real Madrid were also said to still be in the race to sign him.
Leroy #Sane has joined @ManCity. Thanks and good luck, Leroy. #S04 pic.twitter.com/dxCZ6QxmT7
- FC Schalke 04 (@s04_en) August 2, 2016
"We green-lit the transfer because the economical conditions were met for our approval," Heidel told the club's official website. "But we all feel a bit sentimental about this [transfer].
"We are losing a superb footballer with a great character in Leroy, who Schalke have a lot to thank for. The team and club wish him all the best on his future endeavours.
"The people at Manchester City showed a professional demeanour at all times. They were tough but fair negotiations."
Guardiola has already bolstered his squad ahead of his first campaign as a manager in the Premier League by signing Ilkay Gundogan from Borussia Dortmund, Nolito from Celta Vigo and Oleksandr Zinchenko from Russian club Ufa.
City are also close to securing deals for Palmeiras forward Gabriel Jesus and Atletico Nacional attacker Marlos Moreno and are hoping to sign England defender John Stones from Everton.