Kateregga, who can also play as a striker, was on the books of AFC Leopards until last year December 31. The Ugandan has the ability to play on both flanks.
"Allan Kateregga has joined Cape Town City on a three-year deal," a source from Uganda tells KickOff.com.
"He has joined Dennis Onyango in the PSL. He is a left-winger. He was an AFC Leopards player until December 31. He spent the last six months at KCCA FC in Uganda. He was on loan at KCCA. His contract at AFC Leopards expired in December."
When contacted for confirmation, City's chairman John Comitis promised to come back to KickOff.com in 10 minutes, but when contacted again his phone was off.
One of the City players, who did not want to be named, confirmed that Kateregga was with the team yesterday.
City take on Cape rivals Ajax Cape Town in the derby this afternoon (15h30).