The 25-year-old moves to Milan after an unsuccessful two years at the Etihad.
Jovetic arrived in Milan on Monday and completed his medical on Tuesday.
Despite winning the Premier League title and Capital One Cup in his debut season, he managed just 11 goals from 44 appearances at City due to persistent injuries and competition from the likes of Sergio Aguero and Edin Dzeko
And with January signing Wilfried Bony also in the squad and the likelihood of a formation change to 4-3-3, regular minutes for Jovetic appears to be slim.
The Montenegrin joins up with former City manager Roberto Mancini in the Italian capital.
A fee has yet to be agreed but the Bosnian looks certain to move on having slipping behind Sergio Aguero and Wilfried Bony in the pecking order.
Record summer signing Raheem Sterling is also an option to play in attack for Manuel Pellegrini’s side
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