The 21 year-old central defender is yet to play a first team game for City and will continue to gain experience away from the Etihad this campaign.
Denayer, who signed a new five-year deal with the Blues in July 2015, has already spent season-long loan deals with Celtic and Galatasaray, making a total of 69 appearances over the past two seasons.
He was voted PFA Scotland Young Player of the Year and Celtic Young Player of the Year while at Parkhead during a successful stay for the then-19 year-old.
The Belgian has also deputised for Vincent Kompany in the Belgium national team on a number of occasions, winning seven caps to date for the Red Devils.
We will keep tabs on Jason's progress throughout the campaign in our Loan Watch series.