The 20-year-old attacking midfielder made 43 appearances for the Blades last season, scoring nine goals and winning their Young Player of the Year award as they finished second in the division.
He’s been on the bench for all of City’s matches so far this season, coming on for Kyle Walker in the 3-0 opening day victory over Burnley.
McAtee progressed through the Academy from Under-11s to the EDS after signing his first professional contract in July 2020.
He was handed his senior City debut in September 2021, coming on as a substitute in our Carabao Cup win over Wycombe Wanderers.
He has since featured six times as a substitute, three times in the Premier League, twice in the FA Cup and once in the Champions League.
A stellar season with our EDS in 2021/22, when he finished as joint-top scorer in the league, also saw him named Premier League 2 Player of the Season.
Everyone at Manchester City wishes James the very best of luck for the rest of the campaign.