The 28-year-old England midfielder moves for £12million and has signed a five-year contract at Eastlands having completed a medical earlier on Tuesday.

Barry, who was a target for Liverpool last summer, leaves Villa after 12 years and more than 400 matches.

The midfielder had publicly stated he wanted to play in the Champions League and it is understood he has received assurances regarding the quality of player Mark Hughes is looking to bring in this summer to help establish City as a major force.

And he is likely to be assured of regular first-team football at Eastlands - a crucial factor in the build-up to the 2010 World Cup finals in South Africa, assuming England qualify.

makes sense

Martin O'Neill refused to budge from his £18m valuation of the player when Liverpool relentlessly pursued Barry less than 12 months ago.

But with Reds manager Rafael Benitez's priorities for squad-building lying elsewhere, City saw their chance to sign an established England international and proven Premier League player.

Even though they are £6m down on the deal from a year ago the transfer still makes sense for Villa as Barry, who is currently with the England squad preparing for a World Cup qualifier in Kazakhstan on Saturday, could leave for nothing at the end of next season.

Barry said: "I'm delighted to be joining City.

"It didn't take much persuasion from Mark Hughes, they are heading in the direction I want to go.

"There is great potential here, and I'm sure there will be a few more additions to the squad this summer."

Hughes is banking on the midfielder's experience in the domestic and international arena to take the club to the next level.

hardest league

He said: "Gareth is widely acknowledged as one of the top midfielders in the Premier League and that is a recommendation in itself.

"When players of his quality become available then you have to be in the market for them so we are absolutely delighted that we have been able to conclude this deal.

"The experience required to compete with the best in the Premier League is vital.

"With Gareth we get the experience of someone who has played week-in, week-out in the hardest league in the world.

"He plays at a level that has an impact on the game and we are thrilled that he is joining us."