City moved from Maine Road after the 2002 Commonwealth Games
Manchester City have confirmed the City of Manchester Stadium will be renamed the Etihad Stadium after signing a 10-year deal with the airline.
The Abu Dhabi-based company is already the club's shirt sponsor.
"We are delighted to be expanding our relationship with Etihad Airways through this partnership agreement," said City chief executive Garry Cook.
City, who won the FA Cup in May, were taken over by a consortium from Abu Dhabi in 2008.
In total, owner Sheikh Mansour has ploughed over £1billion into the club, helping City to win their first trophy since 1976 and finish third in last season's Premier League, earning a place in the Champions League.
However, last season City posted loses of £123.3m.
Top Flight Sponsored Grounds
- Arsenal - Emirates Stadium
- Bolton - Reebok Stadium
- Manchester City - Etihad Stadium
- Stoke City - Britannia Stadium
- Swansea City - Liberty Stadium
- Wigan - DW Stadium
This sum would cause City to fall foul Uefa's new financial fair play regulations, which come into force this summer but will not take full effect until 2013.
Any side unable to match the criteria would be barred from playing in European competition - the Champions League and the Europa League.
Under the terms of the new rules, teams will not be able to spend more than the income they generate from the football side of their business - which includes gate receipts, TV deals and sponsorship.
Therefore, City's move to sell the naming rights to the stadium, which has had to be agreed by Manchester City Council, will contribute to the efforts to reduce footballing losses.
Although City have not made public the amount they have received from the deal, they will not be allowed to report an inflated sum to Uefa.
European football's governing body have made clear that all commercial deals will come under scrutiny in order to ensure that all clubs adhere to the new regulations.