The Portugal international joined City from Juventus in the summer of 2019 and won the Premier League title and Carabao Cup in each of his first two seasons at the Club.
He also made 26 appearances in the 2022/23 season before switching to Bayern Munich on loan in the January transfer window.
The 30-year-old then spent the entire 2023/24 campaign on loan in Spain with Barcelona.
In total, Cancelo made 154 appearances for City, scoring nine goals for Pep Guardiola’s side and now moves to the Saudi Pro League for a fresh challenge.
Before completing his move, Cancelo said: “I would like to wish everyone at City continued success in the future.
“I had many very special moments during my time here at this great Club.
“I would like to thank my team-mates, the coaches, all the staff at City and the fans for everything during my time here.”
Director of Football, Txiki Begiristain, added: “I would like to thank Joao for his contribution during a remarkable period at City.
“He made a big impact in title-winning campaigns and was a huge influence on the pitch.
“I would also like to give him my best wishes for the future and the rest of his career.”
Cancelo made a huge impact when he arrived in English football with a mix of of outstanding attacking displays and defensive solidity.
With Kyle Walker established at right-back, he switched to the other side of the pitch and fitted in perfectly.
His ability to be just as effective on the left flank was helped by his trademark ‘trivela’ - a curling pass with the outside of his right foot.
It led to a number of outstanding assists, most memorably for Raheem Sterling in a 3-0 win over Everton and a more conventional cross for Bernardo Silva in a Manchester derby win at Old Trafford.
Cancelo made 43 appearances in the 2020/21 season and 52 appearances in the 2021/22 season when we won the Premier League titles as well as the first half of our historic Treble season before moving on loan to Bayern.
He also started the 2021 Carabao Cup final when we beat Tottenham 1-0 at Wembley.
Everyone at Manchester City would like to wish Joao the best of luck with the next stage of his career.