Spurs had been reluctant to meet the player’s wage demands, thought to be around 170,000 pounds a week ($264,000 per week), putting the proposed move in jeopardy.
The former Arsenal striker has fallen out of favor at the Etihad Stadium and spent the past two seasons out on loan.
After temporarily joining Real Madrid in 2011, a permanent move failed to materialize and the former Togo captain opted to join Spurs on loan last season.
The player was a tremendous success at Tottenham, scoring 18 goals in all competitions.
Adebayor signed for City in a deal believed to be in the region of 25 million pounds but the transfer fee to bring him to White Hart Lane is said to be as low as 5 million pounds.
City manager Roberto Mancini put an end to speculation linking him with the Russia job by signing a five-year deal to keep in Manchester.
Since replacing Mark Hughes in 2009, Mancini has been a huge success at the club, guiding the team to the FA Cup in 2011 and the Premier League title in 2012.
“Manchester City is a fantastic football club,” Mancini told the club's website.
“I am very much looking forward to the challenges and excitement ahead,” he said.
“I am delighted to be able to give all of my efforts to Manchester City for a further five years. The opportunity which exists to build on our recent success is enormous,” he added.
City begin their title defense against newly promoted Southampton on Aug. 19 but the Italian will be under no illusions of what is expected of his side after setting such high standards at the club.
“This new agreement allows Roberto to focus on the challenge of guiding a team which is capable not only of defending the Premier League title but one which can compete for European honors,” said City's interim chief executive John MacBeath.
Manchester United are stepping up their pursuit of Brazilian midfielder Lucas Moura, amid competition from Real Madrid and Inter Milan.
A United delegation has arrived in Brazil to speak with the playmaker’s current club Sao Paulo about a 30 million pound deal for the player, after the 19-year-old’s father spoke to Inter last week.
The Old Trafford outfit are keen to spice up their midfield after narrowly losing out on the Premier League title to local rivals Man City, with United boss Sir Alex Ferguson having identified Moura as having the potential to provide a much needed attacking thrust to the side.
United hope to conclude a deal before the player links up with Brazil’s Olympic squad, who are hoping to win their first gold medal.
Liverpool are closing in on Roma forward Fabio Borini, with the Italian international expected to be confirmed as Brendan Rodgers’ first signing since joining the club from Swansea.
The 21-year-old previously worked with Rodgers during the manager’s spell working with Chelsea, with the player also having previously joined Swansea on loan.
Talks are ongoing, but no complications are foreseen, with the Italian likely to join in a deal worth up to 11 million pounds.
“He will be terrific, I'm sure – and the supporters will absolutely love him,” Rodgers said, adding that he hopes further signings will follow.
“Going forward hopefully we can bring maybe two or three more and then with the group of players that I already have it'll bode really well for us and provide us hopefully with that strength in the group to challenge in every competition,” he told the BBC.
Rodgers refused to rule out the possibility of Andy Carroll joining AC Milan.
“It’s something I would have to look at, I have to be honest,” Rodgers said.
“I’m not going to sit here and say I will never let anyone go on loan, then come in here in two weeks and a player’s gone, and you’re saying ‘you said you wouldn’t let them go.’
“Sometimes a player going out on loan – in general, not just Andy – can benefit the club in the long term.
“Andy’s a player I want to assess and speak with. We’ve already had a good chat on where we’re at.
“Time will tell for him and all the players whether they are in my plans but my job is to assess that.”