Torres, 20, has signed a five-year contract with the English club and will replace Leroy Sané.
Here we go! We’re delighted to announce the signing of @FerranTorres20 from Valencia on a five-year deal ✍️
— Manchester City (@ManCity) August 4, 2020
One of Spain’s top young players, Torres was entering the final year of his contract, explaining his low transfer fee.
Valencia could receive a further €12m (£10.8m) in add-ons if certain objectives are made.
Torres spoke to City’s official channels after signing his contract with Pep Guardiola’s side.
“I am so happy to be joining City,” Torres said. “Every player wants to be involved in attacking teams and Manchester City are one of the most attacking in world football.
“Pep encourages a really open, aggressive style, which I love, and he is a manager with a proven track record of improving players. To have him overseeing my development is a dream.
“City have won plenty of trophies in the last 10 years and I hope I can play a role in continuing that success.”
Valencia-born Torres made 97 first-team appearances for his boyhood club, scoring nine and assisting 12 goals.
But his future is in Manchester, where he’ll hope to follow in the footsteps of another Valencia icon, David Silva.