Manchester City and the New York Yankees have formed a new Major League Soccer team to play in New York City from 2015.
Premier League club Manchester City, which is owned by Sheikh Mansour of Abu Dhabi, will be the majority partner with the Yankees, the biggest name in baseball, an "active member of the ownership group", MLS said.
The new team will be called New York City Football Club and will play at a temporary home in 2015 while efforts to find and build a new stadium are completed.
MLS has already begun discussions with the City of New York about the possibility of constructing a new stadium in Flushing Meadows Corona Park in Queens.
"The club's new management will continue these discussions with local government officials, community residents and businesses, soccer leagues and MLS. The club will continue to review other potential sites as well," the league said in a statement.
The new club will become the 20th team in Major League Soccer and will face a local rival in the New York Red Bulls who play in Harrison, New Jersey.
The "franchise fee" is $100 million.
New York City will operate as a separate entity to Manchester City, although there will inevitably be close links between the teams.
Soriano will now begin the process of putting in place a separate administration for the new entity, which will in turn appoint coaching staff and begin player recruitment.
Manchester City's possible expansion into the MLS was rumoured last month, although it was suggested it would be more of an enterprise undertaken by owner Sheikh Mansour rather than the club itself.
The involvement of the Yankees builds on a partnership City already have with baseball's most famous club through Legends Hospitality, an international catering organisation.
City are also due to play at Yankee Stadium in their second match against Chelsea on Saturday.
The Yankees will not be involved in the football side of the business but will bring their considerable commercial expertise to the operation.
Hal Steinbrenner, managing general partner of the New York Yankees, said: "We look forward to the opportunity to work with Manchester City to create something very special for the soccer fans of New York - and to bringing another terrific team to this city for all sports fans to enjoy."