“I can’t wait to get stuck in and help achieve the goals”
Stones said: “I’ve obviously seen what’s going on here at the Etihad, it’s an ambitious club with a great manager so I can’t wait to get stuck in and help achieve the goals.
“I know it will be tough getting a place in this team but I’m determined to become the best player I can be and help us to success.
“I had a wonderful time with Everton and wish them and their fans all the best but now I’ll give my all for City.”
The Toffees will receive £1.25m each time City win the Champions League with Stones in their squad, for a maximum of two extra payments.
It means Stones surpasses Raheem Sterling as the most expensive English player after City paid £44m rising to £49m to Liverpool last summer for the winger.