McAtee has registered 16 goals and three assists in 19 appearances across all competitions for his boyhood side across various levels since the start of the campaign.
The Salford-born star, whose current contract at the Etihad Stadium is set to expire in 2023, made his Premier League debut in his side's 3-0 victory over Everton in November, as he replaced fellow academy graduate Cole Palmer in the closing stages against the Toffees.
It was reported recently that Manchester City were confident in securing a long-term deal for the 19-year-old despite interest from the likes of Barcelona, Manchester United and Liverpool.
According to the latest information of Jack Gaughan of The Daily Mail, talks are 'progressing' with the talented midfielder over a long-term contract, which would see Manchester City tie down one of their own for the years to come - with Foden also close to penning a new deal.
McAtee could be in line to feature for City in their deadrubber Champions League group-stage clash away at RB Leipzig on Tuesday evening, with Pep Guardiola expected to shuffle his pack after his side sealed qualified for the knock-out stages of the competition with a 2-1 win over PSG last time out.
It was reported previously that City were growing 'increasingly uneasy' over the rising interest in McAtee, who signed his first professional contract with the Manchester club in the summer of 2020.
Moreover, it was stated that Swansea were plotting a January loan swoop for McAtee, who was linked with an £8 million move to Brighton in the summer.
Following his first-team debut for his boyhood club against Wycombe, McAtee said, "When he (Guardiola) shouted me over, I was like, ‘Wow, it’s happening’.
"A buzz, smiling the whole way through. I went left-back. Pep (Guardiola) said, ‘Can you play there?’ I said anything to get on the pitch and I just tried my hardest."
"I just have to push on and keep doing the stuff that I'm doing with U-23's and just try and impress. When you come on (for the senior team) and all the fans are cheering and celebrating, you feel comfortable, you feel at home."
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