The Premier League club will pay an initial £32 million for the 22-year-old, with a further £2.2 million included in potential add-ons. Allan has signed a five-year contract and becomes the latest addition to Manchester City's squad during a busy summer transfer window.
The Brazilian winger arrives as a replacement for compatriot Savio, who completed a £75 million move to Tottenham Hotspur last week.
Allan developed through Palmeiras' youth system before establishing himself in the first team. During his time with the Brazilian top-flight side, he scored nine goals and registered 12 assists in 96 appearances across all competitions.
Speaking after completing his move, Allan described joining Manchester City as the proudest moment of his career.
He said the club's success over the past 15 years had made it one of the most attractive destinations in world football and added that the opportunity to join the English champions was an easy decision.
The winger also expressed his affection for Palmeiras, saying he would always love the club, but explained that his conversations with people at Manchester City convinced him it was the right place to continue his development and fulfil his ambitions of becoming the best player possible.
Allan joins a City side that has spent heavily during the summer window. The club's spending has already surpassed £230 million, with Elliot Anderson arriving from Nottingham Forest for £116 million and Ayyoub Bouaddi joining from Lille in a deal worth £85.6 million.
Manchester City are also reportedly in discussions with Liverpool over a possible move for Dutch forward Cody Gakpo and remain interested in Chelsea midfielder Enzo Fernandez.
Despite their significant spending, City have also generated substantial income through player departures, raising more than £286 million in sales.
Among the biggest exits was 2026 World Cup Golden Ball winner Rodri, who joined Barcelona in a £65 million deal. Tijani Reijnders also departed for Al-Qadsiah for £52 million.
Nico Gonzalez and James Trafford were also sold for significant fees, while Omar Marmoush joined Tottenham on loan in a deal that includes an obligation to make the transfer permanent next summer for £60 million.
Allan's arrival gives Manchester City another exciting attacking option as the club continues reshaping its squad ahead of the new season.
