
The 28-year-old has signed a three-year contract and passed a medical, although the move is subject to a work permit.
City manager Sven-Goran Eriksson said he was delighted to sign Petrov, who had been wanted by Tottenham Hotspur. Petrov was unveiled with another new signing, Brazilian midfielder Geovanni.
"I'm sure that a lot of clubs wanted both of them, and I'm very happy that we were able to get them," Eriksson said. "They will do very well for us, I'm sure about that.
"They are experienced, and it's important that we don't just buy players around 19 or 20 years old. In the Premier League you need class and experience, and these two are top class players."
Atletico Madrid agreed to sell Petrov after agreeing a 13.4 million-pound deal with Benfica for winger Simao Sabrosa, who had been the subject of interest from Liverpool in recent seasons.
Former England manager Eriksson said fans could expect to see more new faces at the club before the transfer window closes at the end of August.
"I don't think we are finished signing, there will be more new faces coming in different positions," he said.
"The new owner has shown he means serious business when he says that he wants to build a strong team which is not fighting at the bottom of the table. This is one way in which he has shown that." dpa
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