Stefan Savic has completed his move to Manchester City from Partizan Belgrade on a four-year deal.
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Savic, who was being tracked by Arsenal earlier in the summer, follows Gael Clichy in joining City this week ahead of their first Champions League campaign. He moves for an undisclosed fee.
The 20-year-old Montenegro international, who was part of the side which held England to a goalless draw at Wembley earlier this year, played for Partizan in Europe's elite competition last season.
He operates either in the centre or the right of defence.
There had been reports that City would have to wait until after Partizan played FK Skendija in a Champions League qualifier later this month. But if Partizan then qualify for the group stages of the competition the player would be ineligible for City until the latter stages.
As Savic has only six international caps to his name he was not automatically entitled to a work permit, but he has now been approved by the Home Office.
"I was up against Shaun [Wright-Phillips] when he came on as a substitute and he was very tricky," Savic told the club's official website in reference to the draw with England in a Euro 2012 qualifier. "I never imagined that I'd be team-mates with all those City players within a year and I'm so happy to be at this club.
"I can't wait to play alongside them and all the other fantastic players we have here. It is a dream come true and I'm especially looking forward to meeting Edin Dzeko and Aleksandar Kolarov because they both speak my language and come from the Balkans, too.
"Aleks has already phoned me to welcome to City which makes me feel at home already.
"I watch the Premier League all the time and I know it's the place to be so I am just looking forward to helping this club achieve great things. We have an incredible stadium and I've seen how passionate the City fans are many times on TV.
"Montenegro play England later this year so I'm expecting to have some great banter with the England lads. I'm just really happy to be a City player."