City have had three major badges since the 1930s and adopted the current design in 1997.
The existing crest is in the shape of an eagle, but the new design - which the club said would be unveiled in the coming weeks - will revert to the round shape of its two predecessors.
New York City FC and Melbourne City - both part of the City Football Group along with Manchester City - have round badges with similar lettering around distinctive logos in the centre.
Kevin Parker, general secretary of the Manchester City FC Supporters Club, said on the club's website:
"I am delighted that the club consulted with the fans about our most important symbol. It is impressive that they canvassed our opinions on this matter and that they want to reflect our feedback in the ultimate design.
"On a personal note, while the Eagle badge will rightly live on in fans' hearts, minds and on football kits for all that it has come to symbolise over the years, I am pleased that we will once again see the round design which has twice featured in our past badges."
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