Eriksson left his England post after last summer's World CupFormer England coach Sven-Goran Eriksson has been confirmed as Manchester City manager.
The 59-year-old has signed a three-year deal worth a reported £9m - and is set to be given a £50m transfer kitty.
The appointment was triggered by former Thai prime minister Thaksin Shinawatra's acquisition of more than 75% of City shares.
"I'm delighted and honoured to be City manager. It's an exciting challenge," the Swede told the club website.
He added: "I've already started making preparations for the new season. I want to deliver a team that our fantastic fans can be proud of."
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A new era is about to begin at our club and I for one am glad to be a part of it
IM
It is believed Tord Grip will again be the Swede's right-hand man.
Grip was Eriksson's number two during the former Lazio, Sampdoria and Benfica's six-year tenure as England manager.
Roland Anderson, who is currently Sweden's assistant manager, is also expected to join Eriksson's backroom team.
Eriksson has succeeded Stuart Pearce, who was sacked at the end of last season.
The Swede, who met the City players and took a training session on Wednesday, has been out of football since leaving the England job after the 2006 World Cup.
The club's chief executive, Alistair Mackintosh, said: "I'm delighted that Sven has agreed to join the club as we move into an exciting new era.
"His vast experience of managing top clubs to success around Europe is one of the qualities that attracted us to him.
"He also knows the Premier League inside out during his time as national team manager."
