Rodwell made just 10 appearances for City last season and the arrival of Fernando from Porto this summer pushed him further down the pecking order, paving the way for his exit.
A number of clubs were linked with the 23-year-old, who struggled to establish himself at the Etihad Stadium following a series of injuries, but he has opted to join Sunderland for an undisclosed fee.
Rodwell rose through the ranks at Everton, making his debut against AZ Alkmaar in December 2007, before joining City in 2012.
He represented City in the UEFA Champions League as well as the Barclays Premier League and domestic cup competitions, making 26 appearances in all.
“All at Manchester City FC would like to thank Jack for his contribution and wish him all the best for the future,” a statement on the City website read.
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