Premier League outfit Manchester City and legendary baseball side New York Yankees have reached an agreement to acquire the Major League Soccer's 20th club.

The new team, which should enter into the division in 2015, will be known as New York City FC.

"We proudly welcome two of the most prestigious professional global sports organisations to Major League Soccer," said MLS commissioner Don Garber.

"This is a transformational development that will elevate the league to new heights in this country. The New York area is home to more than 19m people­, and we look forward to an intense crosstown rivalry between New York City Football Club and the New York Red Bulls that will captivate this great city."

Man City's chief executive, Ferran Soriano, added: "New York is a legendary sports town, as well as a thriving global city with a rapidly expanding soccer fanbase. We are thrilled to contribute to the energy and growth of New York City soccer. In the Yankees, we have found the absolute best partner for developing a world-class sports organization and a winning team that will carry the New York City Football Club name with pride."

City will be the majority owner of the new club, while the Yankees will be an active member of the ownership group.