Former Liverpool midfielder Dietmar Hamann has joined Manchester City on a free transfer.
Hamann joined Liverpool from Newcastle for £8m in July 1999
Hamann signed a pre-contract agreement with Bolton last month but then changed his mind, telling the club he wanted to join City instead.
Manchester City boss Stuart Pearce confirmed they had paid Bolton compensation for Hamann, despite him never appearing for the Trotters.
The 32-year-old Hamann has signed a two-year deal with City.
Hamann spent seven years at Liverpool but was told by boss Rafael Benitez that he could leave after 283 appearances and 11 goals for the club.
His exit from Anfield came after he slipped down the pecking order because of competition from Steven Gerrard, Xabi Alonso and Momo Sissoko.
But his complicated transfer saga led to Liverpool officially announcing on Tuesday that Hamann had joined Bolton before it was subsequently revealed the player would join another club.
The midfielder said reports of City wanting to sign him was enough to make him decide against joining Bolton.
"I had agreed to join Bolton, but I quickly realised that going to them would not be the right move for me," he told the City website.
"I told Bolton my feelings immediately and they understood my decision.
I rang Sam Allardyce and he gave me permission to talk to Didi
"When I became aware of press reports suggesting that City were interested in me, I was excited at the prospect of joining this club and knew this is where I want to be. I am happy that the situation has been sorted quickly."
Pearce, who spoke to Bolton boss Sam Allardyce before pursuing Hamann, said: "We have agreed compensation with Bolton.
"I think they will be reasonably happy with that and we have a top-quality
"First off all I thought Didi (Hamann) would still be a Liverpool player and
not available. But then his agent phoned me and my first thought was to make sure everything was clear at Bolton.
"We have to be seen to be whiter than white in a situation like this. That's why I rang Sam Allardyce and he gave me permission to talk to Didi.
"I am delighted he is here as he brings experience and leadership qualities
to the team. He has everything.
"If you get more winners like him in your squad, you are going in the right
After transferring from Bayern Munich to Newcastle in 1998, the veteran midfielder spent one season in the north-east before making a £8m move to Liverpool, where he won eight medals.
He played 57 times for his country and, in 2002, Hamann became the first Liverpool player since Roger Hunt in 1966 to play in a World Cup Final.