The Brazil right-back signed a five-year contract at the Etihad Stadium, with City completing a deal believed to be worth £26.5million on Sunday.
Chelsea will continue their pursuit of additional wing back options after seeing Danilo complete a move to Manchester City.
Sky sources report that City are nearing a £26.9m move for the 26-year-old, who is expected to undergo a medical with the Premier League club in the United States. "I just hope to help him out as he expects".
"There has been strong interest from other clubs", the full-back told City's website, "but it has always been my ambition to play for [head coach] Pep Guardiola".
"I can't wait to get started and I'm looking forward to getting to know my new team-mates over the coming weeks".
'I am very, very happy to be joining Manchester City, ' he said.
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"He's been one reason but it's also the ambitious project of the club that convinced me to come".
"Danilo is a fine player who offers great versatility to our squad", City's director of Football Txiki Begiristain added.
However, he'll now be looking forward to this new challenge in his career, as he joins the likes of Bernardo Silva, Ederson and Kyle Walker as new recruits this summer, providing stiff competition for the former Tottenham man on the right side of the defence in the season ahead.
City were beaten by Madrid over two legs in the Champions League semi-final in 2016 but now Danilo wants to deliver City's first European silverware since 1970.
"Undoubtedly it was very important for me being on the pitch and always winning".
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