The England man broke away from the national team for a few hours on Saturday afternoon to complete a medical and agree terms with the American side at Manchester City’s training ground.
The 35-year-old was set to be offered a new deal to stay at Stamford Bridge but doesn’t want to become a bench player and also wasn’t keen on playing for another Premier League club – against Chelsea.
Lampard has reportedly taking a major pay cut to join the new MLS side who don’t start their league season for over eight months.
Where Lampard will be playing until then is unclear but the deal could be announced before the World Cup as the England squad travel to the USA today for more preparations.
Atletico Madrid and Spain striker David Villa has also agreed to join New York City after a glittering career and the double swoop is a real sign of intent from the club run by Manchester City Chief Executive Officer Ferran Soriano.