Barcelona have confirmed the signing of midfielder Ilkay Gundogan from Manchester City as a free agent.

Gundogan, 32, is out of contract with City at the end of the month and has agreed to join Barca on a two-year deal with the option for a third year. His release clause has been fixed at €400 million.

- Stream on ESPN+: LaLiga, Bundesliga, more (U.S.)

Sources told ESPN last week that City were unwilling to match Barca's financial offer and would only extend Gundogan's contract for one year with an option for a second.

The German international becomes the Catalan club's first signing of the summer, although ESPN have previously revealed there is also an agreement in place to sign defender Inigo Martinez when his deal with Athletic Bilbao expires at the end of June.

Gundogan joins Barca, who won their first league title since 2019 this past season, to add depth and goals to midfield after they missed out on Lionel Messi, who has opted to join Inter Miami.

"For me it has been a total privilege and pleasure to be part of Manchester City for the last seven years," Gundogan said in a statement.

"Manchester has been my home and I have felt part of a very special family at City.

"I have been lucky to have experienced so many unforgettable moments in my time here and to have been captain for this extra special season has been the greatest experience of my career."