The deal for the 22-year-old - understood to be worth in the region of £30million - is subject to a work permit being granted.
Bailly, a pacey centre-back, has penned a four-year contract and is new United manager Jose Mourinho's first signing at Old Trafford.
"It is a dream come true to be joining Manchester United," he told the club's official website.
"To play football at the highest level is all I have ever wanted to do.
"I want to progress to be the best that I can be and I believe working with Jose Mourinho will help me develop in the right way and at the right club. I am looking forward to meeting my new team-mates and to starting this new chapter of my life."
Bailly made 35 appearances for Villarreal having joined them from Espanyol in January 2015.
He has been capped 15 times by the Ivory Coast, and was part of the 2015 Africa Cup of Nations-winning team.
Mourinho said: "Eric is a young central defender with great natural talent. He has progressed well to date and has the potential to become one of the best around.
"We look forward to working with him to help nurture that raw talent and fulfil his potential. Eric is at the right club to continue his development."
The 22-year-old becomes the Portuguese's first
signing for a fee in the region of £30 million and has been tipped to
become a star at Old Trafford
Jose Mourinho believes Manchester United’s new signing Eric Bailly has the potential to become one of the best in the world.The 22-year-old has joined from Villarreal in a deal worth around £30 million and has signed a four-year contract with the option of a further two seasons.
Bailly, who has made only 35 La Liga appearances, is Mourinho’s first signing as United manager and the Portuguese believes the Ivory Coast international can develop into a star
Eric is a young central defender with great natural talent,” Mourinho told the club’s official website.
“He has progressed well to date and has the potential to become one of the best around.
"We look forward to working with him to help nurture that raw talent and fulfil his potential. Eric is at the right club to continue his development.
“He has progressed well to date and has the potential to become one of the best around.
"We look forward to working with him to help nurture that raw talent and fulfil his potential. Eric is at the right club to continue his development.
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