The club donate £5 for every sale from a festive retail range to their City in the Community charity, trebling additional donations from fans and staff.
Funds raised so far equate to 5,750 hours of free mentoring for young people.
Jack Grealish was among City men’s and women’s first-teamers to hand out more than 500 gift bags at Royal Manchester Children’s Hospital.
Defender John Stones said: “I hope those memories go some way towards creating a special Christmas for them all.
“It makes me proud to know City and our fans are creating real, impactful opportunities for young people through the club’s festive campaign.”
Wing sensation Jeremy Doku wore a smile as bright as the kids’ as he joined team-mates around the hospital.
The club’s City in the Community scheme “supports city youth to empower healthier lives through football”.
Its designed to boost mental and as well as physical health.
City also give gifts to kids staying in the Royal Manchester Children’s Hospital over Christmas.
And the hospital trip was a delightful diversion for Pep Guardiola‘s Treble winners ahead of Wednesday’s Champions League Group G finale.
Like a Christmas fairy, City are guaranteed to be top of the tree – as they have won all five games so far.
Guardiola’s men visit Red Star Belgrade – with the Spaniard downplaying long-term fitness fears over Erling Haaland.
The goal machine missed Sunday’s 2-1 Premier League comeback win at Luton through injury.
But Guardiola suggested the striker could return for Saturday’s Prem game at home to Crystal Palace.