The Brazilian arrives at the Etihad Stadium with an excellent reputation due to his form with Porto in recent seasons, but he admits that it will be difficult to battle with Toure and Fernandinho for a spot in the City midfield.
"It is a dream to be here and to be part of this great club," Fernando told the club's official website. "I also hope to become one of the club's great players.
"We know they are players with a lot of qualities. It won't be easy to get into that midfield, but with a lot of work, and I know how to give myself to work, every day I will give my best in order to have a chance to make a contribution to the team.
"The player I admire the most and I watch many of his games is Yaya Toure, he is a great player and it will be an honour to play alongside him."