The Court of Arbitration for Sport ruled two weeks ago that some of UEFA's accusations of financial violations by City could not be proven and others were time-barred because they did not meet a five-year statute of limitations.
Bayern said on Friday that Sane has signed a five-year deal through June 2025 and will start preparing for the upcoming season next week.
British and German media reported on Tuesday that Bayern had reached an agreement with City to sign Sane in a deal worth 45 million euros ($50.47 million) plus add-ons, with the winger poised to a sign a five-year deal with the German club.
Bayern Munich is set to make an initial payment of 49 million euros and Manchester City could receive a further 11 million euros based on Sane's achievements with the German champions
Premier League: Leroy Sane to leave Manchester City after turning down contract deal, reveals Pep Guardiola
Leroy Sane's contract runs out at the end of next season and reports have linked him with a move to Bayern Munich. Guardiola said he had wanted Sane to stay but the player wants to make a fresh start.
Bayern Munich hopes to make some new signings to make up for a number of injuries, even if Manchester City forward Leroy Sané won’t be one of them.
Euro 2020 Qualifiers: Bayer Leverkusen midfielder Kai Havertz latest to be ruled out of injury-ravaged Germany squad
Bayer Leverkusen said Monday the 20-year-old Havertz tore a muscle in his thigh during the side's 2-0 win at Wolfsburg in the Bundesliga on Sunday
Euro 2020 Qualifiers: Toni Kroos returns to Germany's squad; Emre Can, Marc-Andre ter Stegen included as well
Kroos had missed their most recent internationals in June with a muscle injury while fellow midfielder Can last made the squad in October 2018 while Ter Stegen had been nursing a knee injury.
Bundesliga: Bayern Munich complete signing of French midfielder Mickael Cuisance from rivals Borussia Moenchengladbach
Bayern had announced on Friday evening that Cuisance, 20, had undergone a medical in Munich. Gladbach confirmed on Saturday that the transfer was complete.
Bundesliga: After Robert Lewandowski, David Alaba says Bayern Munich need more signings to defend title
David Alaba said that his club Bayern will need 'one or two' more signings in the transfer season to ensure necessary breadth in the team for a long season
Bundesliga: Bayern Munich coach Niko Kovac says club still looking to bring in 'fresh blood' before end of transfer season
Before the signing of Ivan Perisic, Bayern striker Robert Lewandowski had loudly been demanding the signing of at least three or four more players
Perisic, 30, is widely considered to be Bayern's back-up option after their bid to sign Leroy Sane was derailed by the Manchester City winger's recent knee injury.
Premier League: Leroy Sane to undergo surgery after suffering cruciate ligament damage, set to be sidelined for months
Bayern had identified Sane as the primary target in their search for a long-term replacement for departing club icons Arjen Robben and Franck Ribery
Bayern Munich coach Nico Kovac apologises to Manchester City boss Pep Guardiola over public pursuit of Leroy Sane
Bayern Munich coach Nico Kovac admitted that he had telephoned Manchester City boss Pep Guardiola to apologise over his public pursuit of the English club's German striker Leroy Sane.
Manchester City's pre-season friendly against Hong Kong side Kitchee marred by protests against China in stadium
Manchester City's pre-season friendly against a Hong Kong side Kitchee saw the fans in the stadium cheer against a proposed extradition bill
Manchester City thrash Kitchee in politically charged friendly as spectators chant 'Free Hong Kong,' wave anti-extradition banners
It added a layer of intrigue to what was otherwise a routine win for Manchester City, who conclude their pre-season Asian tour in Japan this weekend before playing Liverpool in the Community Shield a week later
Premier League: Pep Guardiola urges Leroy Sane to decide Manchester City future amid Bayern Munich interest
Pep Guardiola urged Leroy Sane to decide if he wants to stay at Manchester City or go to Bayern Munich as the unsettled star scored twice in a 6-1 rout of Hong Kong's Kitchee
Premier League: Manchester City players to decide new captain following Vincent Kompany's departure, says coach Pep Guardiola
Manchester City coach Pep Guardiola said on Wednesday that he will let his players decide who will captain the Premier League champions next season following the departure of long-time skipper Vincent Kompany.
Premier League: Raheem Sterling scores brace as Manchester City come from behind to beat West Ham United in friendly
England international Raheem Sterling, who enjoyed his best season last year for club and country, scored a brace in the second half as West Ham's defence went AWOL in Nanjing
German Club Bayern Munich are looking to sign France international Ousman Dembele for their upcoming season since the plan to sign Leroy Sane might fail