The two times FIFA World Player of the Year, who scored a 13 minute hat-trick against Japan in the 2015 World Cup final in Canada, will be with City until the end of the Spring Series in June.
"I’m always looking for different challenges," the 34-year-old double Olympic gold medallist and veteran of three World Cups, who joins from Houston Dash, told the City website (www.mancity.com) on Wednesday.
"I always want to continue to get better and look for ways where I am going to be able to push my game. Coming here and being part of City is going to do that.
"It’s definitely an unbelievable opportunity to be able to compete in the Spring Series, the FA Cup and most importantly, the Champions League."
Lloyd is the third American player to move to England in recent months, with Crystal Dunn joining Chelsea Ladies and midfielder Heather O'Reilly at Arsenal.
(Reporting by Alan Baldwin, editing by Pritha Sarkar)
