Navas, 31, joined City from the La Liga side on a four-year deal worth £14.9m in June 2013.
He made 173 appearances for City, scoring eight goals, but played just 24 league games last season.
Navas' contract with City expired in the summer, leading him to return to Sevilla, where he began his career, on a four-year deal.
He was part of the Sevilla side that won the Uefa Cup in 2006 and 2007 but suffered from chronic homesickness, which led him to turn down a move to Chelsea in 2006.
Navas will break Sevilla's appearance record if he makes 27 more appearances for the club. He played 393 times in his first spell, with Juan Arza Inigo holding the record on 419.
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Spain winger Jesus Navas has rejoined Sevilla on a free transfer after he was released by Manchester City.