Nunes became Wolves’ record signing when he joined from Sporting Lisbon for an initial £38 million last summer.
Manchester City have signed Wolves midfielder Matheus Nunes on a five-year deal.
After overcoming some minor sticking points in final negotiations over an initial £47.3 million ($59.9 million) deal on Wednesday night, both clubs agreed on a £53 million move – a club-record sale for Wolves.
Nunes became Wolves’ record signing when he joined from Sporting Lisbon for an initial £38 million last summer on a five-year contract with the option of a further 12 months.
However, the 25-year-old Portugal international was keen to move to the Etihad Stadium and did not train with Wolves to push the move through.
Nunes told the club’s official website: “I’m so happy to be joining Manchester City, the champions of Europe and a club I’ve admired for a long time.
“The opportunity to work under Pep Guardiola, one of the greatest managers ever, and alongside some of the best players in the world was something I couldn’t turn down.”
Midfielder Tommy Doyle, 21, heads the other way, joining the Molineux club on a season-long loan with the option to make the switch permanent next summer.
Doyle’s exit follows that of fellow City academy product Cole Palmer, who has joined Chelsea on a seven-year contract.
