Arsenal took the decision not to extend the contract of Miedema, who is the Women's Super League record goalscorer, and now face the prospect of coming up against her as they fight to win the title next season.
The Gunners finished third in the WSL last season, with City one place ahead of them, and both sides are ready to compete with reigning champions Chelsea next year.
"The reason I chose City is because they have the same ambitions as me," said Miedema. "They want to win the league and titles.
"Looking to the future, I've always said I want to play with best players in the world and I think City have got that.
"I haven't played as much football as I would have wished over the past two years, but I think and hope my best years are still to come. I hope I'm going to be able to help the team as much as I can do.
"I am just really excited to be part of the team and for the girls to hopefully help me and get me back to my best. If I get back to my best again then we can achieve really nice things together.
"I do think this is the place to be right now. In the end, it was an easy choice for me. I want to challenge myself every day in training, but also every single week in the games we play."
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