Mahrez was the subject of four failed bids from Manchester City in the January transfer window and, after a move to the Etihad did not materialise he missed training for over a week, with the Algeria international forced to deny going AWOL.
However, the Premier League champions returned with a successful bid for the Leicester winger, who scored 13 goals in 41 appearances for the Foxes last season.
"I am so pleased to have joined City, a side playing great football under Pep Guardiola," Mahrez said.
"Watching them from afar has been a pleasure. Pep is committed to playing attacking football, which is perfect for me, and City's performances last season were outstanding. They're redefining the English game and I wanted to be a part of it.
"I think we can be successful over the coming years and I believe my own game can develop under Pep's management."
Mahrez becomes the most expensive player in Manchester City's history, replacing French defender Aymeric Laporte who joined the club for £57m in January.
Manchester City's director of football Txiki Begiristain says Mahrez will give Guardiola another attacking option as the Spaniard looks to secure successive Premier League titles at the Etihad.
"Riyad is a hugely talented player. He beats defenders and creates space," said Begiristain. "Over the past few years, he has established himself as one of the Premier League's most exciting players.
"We're sure he will bring additional attacking quality to our squad."
Mahrez had joined Leicester in January 2014, helping the club win the Sky Bet Championship that year before playing an influential role in their infamous Premier League title triumph in the 2015/16 season.
"Riyad is a hugely talented player. He beats defenders and creates space," said Begiristain. "Over the past few years, he has established himself as one of the Premier League's most exciting players.
"We're sure he will bring additional attacking quality to our squad."
Mahrez had joined Leicester in January 2014, helping the club win the Sky Bet Championship that year before playing an influential role in their infamous Premier League title triumph in the 2015/16 season.
A statement on Leicester's website read: "In the four-and-a-half years since Riyad signed for the Foxes, he has played his way into the hearts of all Leicester City supporters.
"His moments of magic will live long in the memory as the club and its fans continue to build a long-term legacy for the success delivered by the teams to which Riyad so memorably contributed.
"Riyad leaves with the best wishes of everybody who has worked with him at Leicester City Football Club. He will be welcomed back to King Power Stadium as both an opposition player and a friend of the club."
(Sky Sports)
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