The Club paid £51million to capture the Norwegian.
Pep Guardiola had wanted to discuss the 21-year-old’s impending move at his news conference earlier in the day but said both clubs had asked him not to.
City released a statement two hours later – which read that they have ‘an agreement in principle with Dortmund’ – and have now sealed the prodigious striker ahead of next season.
The Premier League champions beat Real Madrid to his signature and were expected to part with £63m to trigger a release clause in his contract.
But they have secured Haaland for £12m less than that figure – similar finance to Barcelona’s signing of Ferran Torres in January.
The Norway international, who has plundered 85 goals in 88 appearances for Dortmund, is set to earn around £400,000 a week over the course of a long-term contract.
That puts Haaland in the highest bracket of earners among Guardiola’s squad and around the same level as talisman Kevin De Bruyne.
City have negotiated with Haaland’s father, former player Alfie, and lawyer Rafaela Pimenta. Agency fees and bonuses will take the outlay to £85m.
A club statement read: ‘Manchester City can confirm that we have reached an agreement in principle with Borussia Dortmund for the transfer of striker Erling Haaland to the Club on 1st July 2022.’
Adapted from Dailymail.