The full-back is Pep Guardiola's fifth signing ahead of the new season and follows the likes of Kyle Walker and Ederson as a new face at the Etihad
Manchester City have confirmed the signing of Danilo from Real Madrid in a £26.5 million deal.
The 26-year-old has joined City on a five-year contract and will immediately link up with Pep Guardiola's squad in the United States, where he may make his City debut in the International Champions Cup.
As reported by Goal, City beat competition from Chelsea for the Brazil international and the club are also confident of securing the services of another full-back in Monaco's Benjamin Mendy, with confirmation of his arrival imminent.
Danilo's arrival takes City's spending on full-backs past the £70m mark this close-season after they paid an initial £45m for Tottenham's Kyle Walker – a deal that could rise to an eventual £50m.
City have seen a number of defenders depart the club since the end of last season. Aleksandar Kolarov was sold to Roma on Saturday, following Pablo Zabaleta, Gael Clichy and Bacary Sagna in leaving.
Pep Guardiola is understood to envisage using Danilo in a variety of roles, including left-back and defensive midfield, meaning he would not merely be cover for Walker on the right-hand side of defence.