The Spaniard is effectively swapping sides with Aleksander Kolarov, who was traded from Lazio to the Eastlands earlier this month.

The 24-year-old, a Spain Under-21 international, joined Manchester City from Real Sociedad in 2007 but struggled to get a game under Roberto Mancini last year.

The signing of left-back Kolarov pushed him further down the pecking order, behind the Serbian and Wayne Bridge.

Garrido's move to Lazio was confirmed by the club's president Claudio Lotito.

"Garrido is a Lazio player. He was our first choice to replace Kolarov," he said.

The two clubs are believed to have agreed on a fee of two million pounds ($A3.5 million) for Garrido, well short of the 14.4 million pounds ($A25 million) Manchester City reportedly paid for Kolarov.