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The Republic of Ireland Under-21 international will spend the 2016/17 campaign with Owen Coyle's side after agreeing to join the Championship side until next summer.
Byrne, who joined the Blues when he was 15, spent last season on loan with Dutch side SC Cambuur, making 27 appearances and scoring four goals.
Though he is yet to appear for City's senior team, Byrne was called into the Republic of Ireland senior squad for the friendly matches against Switzerland and Slovakia, though he returned to the Under-21 squad without winning a first cap.
The Dublin-born 20 year-old will hope to impress Irish boss Martin O'Neill in the coming months while helping Rovers challenge for promotion.
We'll keep tabs on Jack's progress in our weekly Loan Watch feature throughout the season.
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