The 18-year-old has put pen to paper on a five-year deal with the Premier League giants keeping him at the club through until 2030.
City have been on a mission to secure some of the world’s best young talent since the start of the year, spending £111 million so far this summer
Speaking to the club’s in house media team, Nypan revealed his delight at making the move along with his eagerness to learn from Pep Guardiola.
“I am incredibly happy and proud to have joined Manchester City.” He said.
“It’s a dream for any young footballer to become part of this Club and to join such a group of world class talent.
“I am still very young with a lot to learn but the chance to be coached by Pep Guardiola, the best manager in the world, will only help me to become a better player.
“There is already a special connection between Norway and Manchester City through Erling Haaland and Oscar Bobb, and I am very proud to have become the latest Norwegian player to have joined the club.”