Signed from Premier League champions Manchester City for an undisclosed fee, the 21-year-old Republic of Ireland international has arrived on a four-year contract.
And McInnes, whose search for a left-back began the moment he took over at Ashton Gate last October, insists Cunningham was the one he wanted all along.
City's manager scouted the Irishman when he was playing for Nottingham Forest on loan towards the end of last season and made initial overtures to Manchester as early as May.
McInnes said: "The left-back position is one that we've needed to strengthen.
"Greg is someone who has interested us for a long time. We scouted Nottingham Forest a number of times at the back-end of last season and he really caught the eye.
"He's a good player who is only going to improve. Greg is a solid defender, determined and full of energy and pace.
"We had a number of options put to us in that position, but good left-backs are hard to find and Greg was always the one we wanted. I believe we have secured the services of one of the best up-and-coming left-backs in the country."
Born in Carnmore, County Galway, Cunningham began his career at Mervue United in his home country before earning a contract with Manchester City's academy in 2007.
He had to wait three years to make his first-team debut for the Citizens in an FA Cup match, before playing in the Premier League for the first time three months later.
His emergence at City and performances for Ireland's under-17 and under-21 sides – the latter as the captain – then prompted a call from Giovanni Trapattoni, who gave the youngster his full international debut against Algeria in May 2010.
In October of the same year, Cunningham joined Leicester on a short-term loan, making 13 appearances before suffering an unfortunate leg fracture in a challenge with former City man Liam Rosenior.
He joined Nottingham Forest on loan in October of 2011 and the deal was later extended to the end of last season.
Having made just three first-team appearances in five seasons at Manchester City, Cunningham remained well down the pecking order at the Etihad Stadium and knew he had to leave if he wanted to play regular first-team football.
He said: "I think it (joining Bristol City) was the best move for me. I had to move away from Manchester City to further and better my career.
"This club is going places. It's got a good, young, ambitious manager in Derek McInnes. He may have only been in management for five years, but he's held in very high regard around Britain.
"I saw the job he did at St Johnstone in getting them promoted to the Scottish Premier League and then achieving a high position in the top division. He came down here and did superbly keeping Bristol City in the Championship. I can't wait to start working for him and his staff."
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