While Pep Guardiola has admitted that City are highly unlikely to announce any fresh incomings in January, the reigning top-flight champions are expected to sanction loan moves for a few academy stars till the end of the season.
Cole Palmer has been reported as being part of Guardiola's plans for the remainder of the campaign, though Manchester City could send James McAtee on loan to help progress his development at a club similar in style of play.
McAtee, who made his Premier League debut in Manchester City's 3-0 win over Everton in November, is yet to commit his long-term future to the club, who have rejected a number of offers for the 19-year-old since last summer.
However, according to Wales Online, Manchester City are yet to make a decision on whether McAtee will be allowed to leave on loan for the rest of the season, with there currently no guarantee that the Salford-born star will stay put until the summer.
Southampton have been linked with a move for the attacking midfielder in January, but sources in the north-west have since played down the possibility of McAtee swapping Manchester City for the Saints on loan midway through the campaign.
It remains to be seen what the coming weeks hold for McAtee's future at Manchester City in the short-term, with discussions over his future likely to be held next week.
James McAtee will be hoping to make his third appearance for the Premier League champions on Friday night, as Pep Guardiola's side kick off their FA Cup campaign with a third-round tie away at Swindon ahead of a heavyweight battle with Chelsea.
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