Kelechi Iheanacho has completed his move from Manchester City to Leicester City, according to an official report by the clubs on Thursday.

The Nigeria international cost Leicester City £25 million, according to sources, and will help strengthen the Foxes’ options alongside Jamie Vardy in attack for the upcoming season.

He joins the 2015-16 Premier League champions after failing to establish himself as a regular member of Pep Guardiola’s team last season, with KweséESPN claiming that City insisted on a £50 million buy-back clause for one of Europe’s brightest young footballers.

The 20-year-old signed a five-year contract with Leicester City, calling time on his three-year career with City and finally completing a move that had been held up in part over the his image rights, with initial reports that a deal was close to getting completed earlier in July.

“It feels good and I’m happy to be part of this team,” Iheanacho told Leicester’s web site.

“I know the ambition of the team and speaking with the manager, he let me know what I need to do — to help the team achieve what they want. I was convinced and I’m happy to be here.”

Iheanacho signed a new contract with City until 2021 at the beginning of last season but saw his first-team opportunities at the Etihad numbered by the arrival of Brazil forward Gabriel Jesus in January.

The Foxes manager Craig Shakespeare added: “It’s a great signing for us. Kelechi is an enormously talented player that has shown a huge amount of promise at every level in which he’s played.

“We’ve tracked his progress for some time, so we know how much quality he’ll bring to the squad. He’s young, he’s hungry, he’s ready for the next stage of his development and I’m delighted that will be with Leicester City.”

A Man City statement said: “Everyone at Manchester City wishes Kelechi all the best with his new challenge.”

The £25m fee makes him the most expensive Nigerian player ever, smashing Odion Ighalo record when he signed for Chinese club Changchun Yatai for £20m in January.

It is also the second highest African transfer fee this season behind Mohamed Salah’s £34.3m move from Roma to Liverpool.

He will don the No. 8 shirt and join his compatriot Ahmed Musa and Wilfred Ndidi at the King Power Stadium after netting nine goals in 30 appearances across all competitions last season. In total Iheanacho scored 21 goals in 64 appearances in all competitions since making his debut for the Citizens in 2015.

He becomes the fourth new arrival at the King Power Stadium during the close season following the signing of midfielder Vicente Iborra, goalkeeper Eldin Jakupovic and defender Harry Maguire.