“Rejoining the city is such a special and proud moment for me and my family,” Trafford said, adding that he was “a hundred times more” back to the club than the players who left in 2023.
“I always dreamed that one day I would be able to go back to Manchester City.
“This is what I call home – it’s a really special football club.
“I'm still young and eager to continue learning and improving – I know there is no better environment than Manchester City to help me become the best goalkeeper I can be.”
The director of football Hugo Viana added: “James is already one of the most accomplished young goalkeepers in the UK game and we are happy to welcome him back to Manchester City.
“He has all the attributes that a top-notch goalkeeper needs.
“We totally believe that he will truly succeed and become the top goalkeeper for Manchester City and Manchester City [England] national team. ”
Trafford is the fourth goalkeeper of manager Pep Guardiola, Ederson, Stefan Ortega and Marcus Bettinelli are already at the club.
Trafford will challenge Brazil's Ederson, who has been number one for eight years.
Ederson is in the final year of his contract and is linked to the move to Galatasaray, but the rumors that he departed last month were called “99% fake news.”
Manchester City has not received any bids from the 31-year-old, but there are questions about the future of Ortega, Germany, as competition will increase in Trafford's arrival.
Trafford signed City's Academy in 2015 but did not play in the first team and was on loan for a while on loan at Accrington Stanley and Bolton Wanderers.
He made 73 appearances for Burnley, including 28 in the Premier League in the 2023-24 season.
Trafford represents England from under 17 to under 21 and is part of the 2023 European champions winning roster, during which he does not admit to scoring goals.
He received his first senior international call in 2024, but has not made his debut at this level yet.
Trafford is the city's sixth signing window after midfielders Tijjani Reijnders (initial fee of £46.5m), Rayan Cherki (initial fee of £30.5m) and Sverre Nypan (initial fee of £12.5m), left back Rayan Ait-Nouri (initial fee of £31m) and Bettinelli (nominal fee).
They also spent £200 million in the January transfer window to strengthen their team's injury.