
The 22-year-old Brazilian joins on a five-year contract as a replacement for Savio.
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Manchester City is currently undergoing a period of high transfer activity, balancing significant spending with major player sales.
Manchester City have signed winger Allan Elias from Palmeiras in a deal worth up to £34.2m.
City have paid an initial £32m plus £2.2m in add-ons for the 22-year-old Brazilian, who has signed a five-year contract.
Allan is a direct replacement for compatriot Savio, who completed a £75m move to Tottenham Hotspur last week.
The right-sided winger scored nine goals and provided 12 assists in 96 appearances in all competitions for Brazilian top-flight side Palmeiras after progressing through the club's youth system.
"This is a surreal moment for me. Manchester City, with everything they have won over the past 15 years, are one of the most attractive clubs in the world for players," Allan said.
"To be able to sit here today and say I have joined them is the proudest moment of my life.
"I love Palmeiras and always will - but the decision to come to City was an easy one. I want to be the best footballer I can be and the conversations I've had with the people at City so far has convinced me there isn't a better place for me to fulfil my ambitions."
Allan is the latest addition to Enzo Maresca's squad during a busy summer window.
City have spent over £230m so far this summer with Elliot Anderson arriving from Nottingham Forest for £116m and Ayyoub Bouaddi joining for £85.6m from Lille.
City are in talks with Liverpool over a move for Dutch forward Cody Gakpo and are keen to sign Chelsea midfielder Enzo Fernandez.
However, City have raised over £286m in player sales with 2026 World Cup Golden Ball winner Rodri making a £65m move to Barcelona, and Tijani Reijnders joining Al-Qadsiah for £52m.

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