According to reports from L'Equipe cited by The Metro, the right-back has finally put pen-to-paper on a bumper three-year contract with the Premier League champions - believed to be worth approximately £150,000-a-week.
The subject of Sagna's future provided a rather unsavoury backdrop to much of the latter half of Arsenal's 2013/14 campaign, with the Gunners seemingly keen to extend his expiring deal beyond the summer.
A lack of an agreement between the two parties, however, led to increased speculation concerning a potential move to Manchester City.
Manchester United were even linked with a late swoop for Sagna, with new boss Louis van Gaal - who was appointed as the Red Devils' next full-time manager earlier this week - appearing keen to provide adequate competition for Rafael da Silva.
Now it looks as if Manuel Pellegrini and Manchester City have won the race to sign the French full-back, who will be heading to the World Cup this summer as part of Didier Deschamps' Les Bleus squad.
While Sagna looks to have secured a nice payday as a result of his imminent move to the Etihad, it certainly seems far from guaranteed that he will start on a weekly basis in the Premier League.
Although it has to be considered unlikely that Micah Richards will remain at the club for much longer, Pablo Zabaleta has made that right-back spot at Manchester City his own in recent years and will surely not be content to give it up without a fight.
As for Arsenal, the departure of Sagna - a player who has been with the club for seven years - has to be considered a disappointment, but it should not come as too much of a shock with the the former Auxerre favourite having long since failed to commit his future in North London.
With previous speculation having suggested that Arsenal have been scouting the likes of Toulouse's Serge Aurier and Southampton academy graduate Calum Chambers, Wenger should not be found wanting in lining up a deal for Sagna's replacement.