The 30-year-old, who only joined City from Celta Vigo a year ago, moved for a reported fee of nine million euros ($10.3m) and has signed a three-year contract.
“Nolito is with Sevilla for the next three seasons, until June 2020,” the club said in a statement on their website.
Nolito has scored six international goals in 16 appearances, but struggled to nail down a regular first-team place under City coach Pep Guardiola last term.
He will take the place of Vitolo at the Ramon Sanchez-Pizjuan, after his Spain team-mate left for Atletico Madrid earlier this week, and be reunited with Sevilla head coach Eduardo Berizzo, who he played under for two years at Celta.
Berizzo will hope Nolito can refind the form that saw him score 39 La Liga goals in 100 appearances from 2013-2016 while he was with Celta.
The deal caps a good week for Sevilla, after also capturing Colombian forward Luis Muriel from Sampdoria on Tuesday.
The club have now made four close-season signings in total since Berizzo joined as head coach in May, after Jorge Sampaoli left for the Argentina national side.
Berizzo is looking to build on an excellent season last term, in which Sampaoli led Sevilla to a fourth-placed finish and a place in the Champions League.
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