Sources told ESPN FC that the clubs had agreed a fee of £45m with a further £5m in add-ons dependent on the club's success in the Premier League and Champions League.
Walker, 27, has signed a five-year deal and will join up with City's first-team squad on Monday when they fly out on their preseason tour to the United States. He will wear the No. 2 shirt.
Pep Guardiola identified the England international as a top target after allowing right-backs Pablo Zabaleta and Bacary Sagna to leave on a free transfer at the end of last season.
The England right-back, who fell out with the Spurs manager towards the end of last season, claims working with City boss Pep Guardiola will take his game to a new level.
And the 27-year-old also believes the move to the Etihad will improve his chances of winning silverware – despite Tottenham finishing above City in the Premier League for the last two seasons.
Kyle walker completes man city move
City stepped up their interest after missing out on the free transfer of Dani Alves, who opted to move to Paris Saint-Germain instead after leaving Juventus.
Walker has been a senior figure at Tottenham for the past six seasons, making 229 appearances for the club, while he has twice been named in the PFA Team of the Year, including last season.
- TEENAGERS ARRESTED AFTER LONDON ACID ATTACK
- BUNDESLIGA TEAMS DID NOT SEE THIS COMING AS JAMES RODRIGUEZ JOINS BAYERN ON A TWO YEAR LOAN DEAL
Walker becomes City's third signing of the summer following deals for midfielder Bernardo Silva from Monaco and goalkeeper Ederson Moraes from Benfica.
City director of football Txiki Begiristain added: "Kyle is a fine full-back, one capable of producing quality at both ends of the pitch.
"We've followed his progress at Tottenham and have been really impressed by how he has developed. He is now one of the best right-backs in the Premier League and justifiably an England regular. I am sure he will be a success at Manchester City this season and beyond."
City are also reportedly closing in on a deal for Monaco left-back Benjamin Mendy.