The deal surpasses City’s previous club-record fee of £116 million, paid for Elliot Anderson earlier in the transfer window, and makes Fernandez the first player in football history to command transfer fees of more than £100 million twice.
The 25-year-old Argentina international previously joined Chelsea from Benfica for £107 million in 2023.
Fernandez’s move to the Etihad Stadium also sees him join former England internationals Alan Shearer and Rio Ferdinand as the only players in the Premier League era to have broken the British transfer record twice during their careers.
City’s pursuit of Fernandez was driven largely by manager Enzo Maresca, who wanted to reunite with the midfielder after working with him at Chelsea.
Maresca, appointed as Pep Guardiola’s successor in June, had apologised to Chelsea for the “disruption” caused by his departure. However, City sources maintained that there was no ill feeling towards Chelsea, with the contractual dispute considered a matter between the club and Maresca.
The Italian reportedly identified Fernandez as a player he could immediately trust because of his familiarity with his tactical instructions and style of play.
Maresca had used a similar approach at Chelsea in 2023 when he signed Kiernan Dewsbury-Hall from Leicester City after working with him during Leicester’s Championship-winning campaign.
Fernandez’s arrival addresses a significant gap in City’s midfield following the departures of Rodri, Tijjani Reijnders and Nico Gonzalez.
City’s midfield had been further exposed in their opening league game against Bournemouth, when centre-back Marc Guehi was deployed in a holding midfield role. Guehi admitted he was surprised by the positional change.
Fernandez brings considerable experience to the squad, having helped Argentina win the 2022 World Cup, where he was named Young Player of the Tournament. He also helped his country reach another major final in July.
The midfielder played an important role in Chelsea’s Europa Conference League and Club World Cup triumphs under Maresca, but his future at Stamford Bridge became uncertain earlier this year.
Fernandez reportedly wanted to leave after Maresca’s departure from Chelsea, while his preferred destination was Real Madrid. However, the Spanish club did not make an offer, considering his valuation too high.
Chelsea’s new manager, Xabi Alonso, also held talks with Fernandez during the summer in an attempt to convince him to stay, but the player remained determined to leave.
His departure appeared increasingly likely after he was jeered by Chelsea supporters during a pre-season friendly against Real Sociedad and subsequently omitted from the squad for victories over Luton and Brighton.
The transfer was finally agreed in the closing hours of the window after weeks of negotiations.
Chelsea had initially set a deadline of 14 August for clubs to match their £120 million valuation, but no offer arrived. The London club later sought £135 million, while City indicated they would walk away at that price.
City eventually offered £125 million, which Chelsea accepted.
The fee gives Chelsea £5 million more than their original valuation, while the Blues have now generated more than £425 million from player sales, including add-ons, during the summer. Loan fees are expected to take their total closer to £500 million.
Chelsea initially planned to keep the Fernandez proceeds without signing a direct replacement but changed course on deadline day, agreeing a £47 million deal for Monaco midfielder Lamine Camara.
However, the move collapsed at the final hour after Monaco reneged on the agreement while renegotiating a deal to sell United States striker Folarin Balogun to Everton.
Chelsea were therefore left with the Fernandez transfer fee but without a replacement. Despite having the option to withdraw from the City deal, the club honoured its agreement and allowed Fernandez to complete his move.
City, meanwhile, have secured Maresca’s priority target as they seek to challenge for the Premier League and Champions League after falling short in both competitions last season.
The club have begun the new campaign with consecutive Premier League victories, with Fernandez now expected to provide additional quality and leadership as City pursue honours on all four fronts.
