The 26-year-old winger, who had a seven-year spell with City from 1998 until 2005, completed a medical on Thursday morning.

Wright-Phillips told City's official website: "Obviously I'm delighted to come back to City and I just can't wait to get started again."

Wright-Phillips left City for Stamford Bridge in July 2005, for a fee of £21million.

However, the England international started only 43 matches for the Blues and became frustrated at a lack of first-team action.

City boss Mark Hughes said: "I've always admired him and he's certainly been a target of mine since I came to the football club.

"To actually secure the deal and bring Shaun back home is a fantastic coup for us and I'm sure the supporters will be just as excited as we are to have him back at Manchester City."

Wright-Phillips is expected to be presented to the media at a press conference at the City of Manchester Stadium on Friday.