The 30-year-old only moved to City a year ago for €18m and scored six goals in 30 appearances for Pep Guardiola's side last season. It is thought that the deal to take Nolito back to Spain is worth around €9 (£7.9m).
The Spanish worldwide arrived in Seville after both Spanish and English clubs reached an agreement on his transfer, reports Efe. However, he went on to make only nine league starts in total and none of those were in 2017.More news: North Korea may have more bomb fuel than thought: USA think tank
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Man City have allowed Nolito to leave for almost £6million less than what they paid for him last summer.
The team have already travelled to Japan for their pre-season tour and Nolito is expected to join them on Tuesday and at least get acquainted before the sea on starts.
The arrival of Nolito adds to those of Luis Muriel, Ever Banega, Guido Pizarro and Sebastien Corchia, while Vitolo, Adil Rami and Vicente Iborra have been among the players to leave Sevilla in a busy close-season.