The Burkina Faso right-back has yet to play for City, having spent loan spells with Mechelen, Troyes and Marseille.
The 22-year-old played 26 times for Marseille last season, including four matches in the Champions League.
“This is a really exciting signing and a big coup for the club. I think he’ll suit the way we want to play,” Luton boss Rob Edwards said.
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“We’ve had a lot of good feedback from the people we know at Manchester City, they really like him, and we think he’s someone who’s now more than ready for Premier League football. He’s had really good challenges in the top division in France so now is the right time.”
Luton are preparing for their first campaign in the top flight in 31 years and have already signed midfielders Marvelous Nakamba and Tahith Chong, as well as defender Mads Andersen and winger Chiedozie Ogbene.
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