The England international passed his medical at the east London club on Thursday and his arrival was announced on Friday morning.
Following confirmation of his move, a delighted Phillips told West Ham's official website: 'I’m really pleased to be here. There’s always been a lot of speculation about me moving to West Ham, so I’m really excited to get going now.
'There’s so much to look forward to in the second half of the season for the Club and I can’t wait to be part of it.
'There’s an unbelievable group here and if I can come in and add the quality that I know I’m capable of, I’m sure we can give the West Ham fans plenty to be excited about between now and the end of the season.'
Hammers boss David Moyes added: 'We are really pleased to bring a player of Kalvin’s quality to West Ham United.
'We’ve been big admirers of him for a long time and we believe that he will add strength and competition to our squad.
'Kalvin is an England international midfielder, with proven Premier League experience. We’re excited to welcome him into the group and look forward to working with him.'
Phillips had also been linked with Newcastle and Italian giants Juventus this month, but has ended up at West Ham, where he will hope to resurrect his career.
He leaves City, at least temporarily, after a difficult 18 months that has seen him struggle for game time.
After signing from Leeds for £45m in July 2022, Phillips made just two league starts in his first season at City.
Phillips underwent shoulder surgery in the opening weeks of his time at City, meaning he hardly played ahead of the winter World Cup in Qatar.
City manager Pep Guardiola then claimed Phillips returned from the World Cup 'overweight', and the holding midfielder remained a peripheral figure in the squad for the rest of the season as the club completed a historic Treble.
His fortunes have not improved this term, as the 28-year-old has not started a single top flight match.
Guardiola admitted earlier in the campaign that he struggled to see how Phillips could fit into his side, with the likes of Mateo Kovacic, Rico Lewis and Matheus Nunes all jumping ahead of him in the pecking order to partner Rodri in midfield.
These comments signalled that Phillips faced an uphill task to ever break into City's starting XI, and that he needed a January move to get back on track.
Phillips will now hope to become a regular fixture in the West Ham side to cement his place in Gareth Southgate's England squad for Euro 2024.
Southgate has remained faithful to Phillips despite his lack of minutes at City, but warned his stars during the last international break in November that they were at risk of missing out this summer if they are not playing regularly at club level.
West Ham have been knocked out of both domestic cup competitions, but remain in the Europa League and have plenty to play for in the Premier League as they currently sit sixth, five points adrift of fifth-placed Tottenham.
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