The 25-year-old midfielder joins on a six-year deal after the Premier League champions activated the release clause in his Aston Villa contract.
The British transfer fee also breaks the previous record held by Paul Pogba when he joined Manchester United for £93.25m from Juventus in 2016.
The Aston villa Star had quite impressive 8 years with the club having made 213 appearances and, scoring 32 goals.
Manchester City also confirmed Grealish will wear the number 10 shirt, which was last wore by long-serving striker Sergio Aguero.
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