Bony has signed a two-year contract at the Liberty Stadium, with the option of another year, for a fee rumoured to be approximately £12 million, which is near to the fee that the club paid to sign him the first time from Vitesse.
Bony becomes Swansea's second signing on transfer deadline day, after Renato Sanches completed a season-long loan move from Bayern Munich earlier.
On Instagram, Bony posted: "Thank you to the fans of Manchester City and Stoke City your support has helped me the past few years.
"Excited to be back at home with Swansea." The Ivorian posted before the deal was actually announced.
Bony was signed by Swansea from Vitesse in 2013. After a slow start at the club he became a cult hero, and finished with 26 goals in 48 appearances from his debut season.
Bigger clubs came calling that summer, but Swansea managed to hold on to the Ivorian until January, after he had scored nine goals in 20 league games, which prompted Manchester City to spend an initial £25 million on him.
He then became the most expensive African player of all time, but his Manchester City career didn’t go the way he had hoped.
Bony was probably expecting to line up alongside Sergio Aguero, but spent the majority of his City career on the bench, which resulted in him scoring just six league goals in 36 appearances for them.
He tried to rejuvenate his career last season, by going on loan to Stoke City. However he failed to embed himself in the team and found himself being left out by manager Mark Hughes.
For Stoke, he scored just two goals in 11 games. Both goals coming against Swansea in Stoke’s 3-1 win over the Swans in October.
Now though, Bony is back at the club that put him on the map and will be looking to jumpstart his career in their next game against Newcastle United on September 10.