City had originally thought about keeping McAtee, who has made 7 appearances for the club, in their squad for the 2023/24 campaign, but in the end he was seen as surplus to requirements by Pep Guardiola and playing regular football is seen as an important step in the midfielder's progression with those at the club still believing that the 20 year old will be able to break into the starting 11 in years to come.

He becomes Sheffield United's tenth signing of the summer transfer window , having fended off interest from Wolves and Nottingham Forest . It is believed he could be a pivotal figure in the Blades' fight for survival.

It is understood that there is no agreement in place for a permanent transfer at the conclusion of this deal. 

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