The highly-rated 20-year-old will move from Borussia Dortmund to Bayern Munich in the summer after the newly-crowned Bundesliga champions activated a release clause in his contract believed to be in the region of €37million (£31.5m).
Prior to the Bayern announcement a number of top European sides had been linked with Gotze, who is seen as one of the rising stars of German football.
He was a key target for incoming Bayern coach Pep Guardiola and sporting reasons prompted Gotze's decision to head for the Allianz Arena.
Had money been his primary motivating factor, however, then a move to City, or another Premier League club, would have been his first choice, according to his representative Volker Struth.
"Mario Gotze is 20 years of age. At such point in one's career sporting reasons have to be the main reasons behind a move," Struth told Bild.
"He decided because of sporting aspects, he was the player [Pep] Guardiola definitely wanted to have.
"If everything was just down to money, Mario would have decided to join Manchester City or another Premier League club."