The Football Association gave the 29-year-old permission to leave the England camp on Monday so he could travel to Italy for a medical.
"Signing Joe Hart is a source of great satisfaction," said a statement on Serie A side Torino's website.
Hart could make his debut in Torino's next game at Atalanta on 11 September.
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The England number one has 63 caps for his country but had been told by new City manager Pep Guardiola that he was free to leave.
"I am convinced I can still learn a lot at Torino," said Hart, who will rejoin the England squad for Sunday's 2018 World Cup qualifying match in Slovakia.
Hart is yet to feature in the Premier League under Guardiola, who has signed Chile goalkeeper Claudio Bravo, 33, from Barcelona.
Officials at City had vowed to help Hart "find the best solution" in order to keep his international place.
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City are paying some of Hart's wages to allow him to move to Serie A for the season, though the amount is not known.
Torino are seventh in the Serie A table, with three points from the first two games of the season.
Former England full-back Tony Dorigo, who spent a year with Torino between August 1997 and October 1998, believes Hart can be a success at the club.
"I think Joe needs to get stuck in there with the right attitude, learn the language and just enjoy the experience," he told BBC Radio 5 live.
City are also set to loan out midfielder Samir Nasri and defender Eliaquim Mangala - to Sevilla and Valencia respectively.
Mangala has travelled to Valencia to agree a deal with the La Liga club.
The 25-year-old France international had a number of options after being told he could find another club.
City paid Porto £32m for the player in 2014.
Source:http://www.bbc.com/sport
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