Thegoalmac understands that the 25-year-old has joined for a loan fee of £2.1 million with Inter legally obligated to buy the forward for £8.5m next summer, having claimed the striker has signed a four-year deal.
City will receive a further £2m if Roberto Mancini's side qualify for the Champions League.
"We are pleased to announce the arrival of Jovetic. This is another important player for our team, a dynamic player that will add even more value to our attack," said President Erick Thohir.
"Mancini will get the best out of him. Welcome Stevan and Forza Inter."
Jovetic joined City from Fiorentina in 2013 for £22m but has struggled to secure a regular first-team role under Manuel Pellegrini, making just 28 Premier League appearances in his two seasons at the Etihad Stadium.
The Montenegro international was also dropped from City's Champions League squad in February in order to accomodate January arrival Wilfried Bony.
