The Spanish right winger made his professional debut with Sevilla in 2003 and played 393 games for his hometown club before signing for Manchester City in 2013 for 14.9 million pounds.
Navas, 31, featured 183 times for the English side, scoring eight goals to help them win a Premier League title and two League Cups.
"Characterised by his great consistency and enviable physical fitness, Jesus Navas returns home with the firm intention of becoming the player with the most appearances in official games for Sevilla," Sevilla said in a statement.
The record is held by Juan Arza Inigo, who played 419 matches for the club and is Sevilla's second top scorer of all time with 204 goals.
(Reporting by Rik Sharma, editing by Ed Osmond)
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