On 31 January 2008, it was announced that Manchester City had secured Caicedo's services on a four-and-a-half year deal through a £5.2 million transfer fee (€7 million), which would make his sale one of the highest transfers in the history of the Swiss Super League. His transfer to Manchester City was completed after Caicedo was granted a work permit. Caicedo was described by his manager as "one of the great South American talents" and was also compared to the Brazilian Adriano. He made his debut on 10 February 2008, in a 2–1 away win against rivals Manchester United, coming on in the second half. He ended the season with 10 appearances in the Premier League, all of them coming on as a substitute.