Ciudad de Murcia was formed in the heat of the summer of 1999, when
Quique Pina, a former player of Real Murcia, started the club with the help of local businesses and influential friendships.
In the 2003–04 season, the new club first appeared in Segunda División. After reaching as high as a 12th place, it finished 17th, narrowly avoiding relegation, repeating the feat in the following campaign (18th).
Impressive performances, particularly towards the back end of the season, saw Ciudad attain a much higher league standing in 2005–06. Influential players such as José Juan Luque (20 goals) and Daniel Kome helped to keep the club in the promotion picture until the last day, eventually losing out to Levante UD for the third place; in the 2006–07 season, more of the same, but now 13 points behind the last promotee, neighbouring Real Murcia.
On 6 June 2007, Ciudad de Murcia was acquired by an investor from Granada, transferring it to that city and renaming it Granada 74 CF. The players still under contract with Ciudad had the option to cancel their contract or stay on with the newly formed club.
As the second division team moved to Granada, the reserve team, CF Atlético Ciudad, playing in the fourth level, became the club's first team in 2007–08.