Knott, 21, arrived at Valley Parade today (Friday) to put pen to paper on a two year deal which will keep him with City until the end of the 2015/2016 season. Knott's City contract also includes the option for the club to extend it into a third year should they wish.
His move to the Bantams comes after City chief Phil Parkinson also completed the permanent transfer of fellow central midfielder Matthew Dolan from Middlesbrough earlier this month.
Knott will officially become a Bantam at the start of July once his contract with Premier League side Sunderland expires.
The energetic midfielder will join up with City after recently experiencing life in League 1 following an impressive loan spell with Port Vale during the final four months of the 2013/2014 campaign.
The Valiants were believed to be one of a number of other clubs interested in snapping up Knott on a full time basis before the Canvey Island-born performer chose to commit his future to the Bantams.
His style of play has been described as 'high-intensity' and 'high-energy' by former managers, while he is also capable of shooting from distance with his stronger left foot.
Speaking about his move to Bradford, Knott said: "You ask a lot of people around the game about Bradford and they say what a big club it is.
"When I came here last season with Port Vale, I was on the bench and you could really take in the noise and atmosphere around the ground. I think Bradford had gone a number of games without a win before that night but the crowd was still buzzing.
"When you see the surroundings around here such as the stadium and you hear the gaffer's plans for how he wants to take the club forward, you can't really turn that down.
"I'm glad to have this move completed quite early in the summer and I can go away and prepare for pre-season properly now. I can't wait to get started and give it 100%.
"That is the way I like to train and I like to play, and I'll try to be no different here. This is a big club and I am excited to get started."
After enjoying spells in the youth ranks at both West Ham United and Chelsea, Knott was first given his chance in the professional arena by Sunderland in 2011.
During his three years at the Stadium of Light, Knott also featured on loan for AFC Wimbledon, Woking and Wycombe Wanderers, as well as his successful spell with Port Vale last season.
He made one Premier League appearance for Sunderland when he was introduced as a substitute at Tottenham Hotspur in May 2013.
The 21 year-old has been capped by England at Under 16, 17 and Under 20 level.