Argentine keeper Caballero joins Man City
Argentine goalkeeper Willy Caballero, then of Malaga, pictured during his side's Champions League quarter-final second-leg against Borussia Dortmund in Dortmund, western Germany on April 9, 2013 - by Patrik Stollarz
The 32-year-old has moved for an undisclosed fee in a switch that sees him team up again with City manger Manuel Pellegrini.
Cabellero played under Pellegrini when the Chilean was in charge of Malaga from 2010-2013.
"I am very happy, and really looking forward to the start of pre-season and performing well to help the team," said Caballero on the club's website mcfc.co.uk.
"This is a new challenge and a new league for me. I have been doing well in the previous years and my goal is to go on and hopefully perform at the same level for City."
City had been looking for a new goalkeeper to provide back-up for first-choice stopper Joe Hart following Costel Pantilimon's release at the end of last season.
And Caballero said he was ready to challenge Hart.
"I know I am coming to a big club with a very good goalkeeper," Caballero said.
"City already have a great goalkeeper in Joe Hart, but I will try and compete for the number one spot. I will do my best in the training sessions."
Caballero began his career with Boca Juniors in his homeland before signing for Spanish club Elche in 2004 where he spent seven years.
He headed for Malaga in 2011 and was named La Liga keeper of the season for 2012-13, Pellegrini's last with the Spanish club.
"The most beautiful moments of my career were under Manuel Pellegrini in Malaga, where we achieved big things and we made Malaga's name known around Europe," said Caballero.
"As for my new team-mates, I have a very good relationship with Martin Demichelis, but I've never met Pablo Zabaleta and Sergio Aguero (City's three other Argentinian players).
"It's something I'm looking forward to. For me it is very good to have people from Argentina in the squad because I think it will be very helpful."
Caballero becomes City's third new signing of the summer after midfielder Fernando and full-back Bacary Sagna.