The 19-year-old midfielder will spend the remainder of the 2022/23 campaign with Paul Heckingbottom’s Championship outfit in what is the first loan move of his fledgling career.
McAtee is the second City youngster to make the switch to the Blades this season, following in the footsteps of Tommy Doyle, who completed a temporary move to Bramall Lane last month.
The loan will provide the England Under-21 international with an opportunity to compete for regular first-team football, building on the experience he gained last season, when he played six times for Pep Guardiola’s side.
McAtee made his debut as a 72nd minute substitute in a 6-1 Carabao Cup third-round victory over Wycombe Wanderers in September 2021, and followed that up with his maiden Premier League appearance when he came off the bench in 3-0 win against Everton two months later.
The attacking midfielder, who joined the Club at Under-11 level, went onto make a further four substitute appearances and his progress was rewarded with a three-year contract extension in February.
A technically gifted, creative player with an eye for goal, the teenager trained regularly with City’s senior side last season and his development was supplemented by regular game time for the Elite Development Squad.
McAtee scored 19 goals in 25 games as Brian Barry-Murphy’s side successfully defended the Premier League 2 title and his fine form was recognised with the Premier League 2 Player of the Season prize.
He will now continue to develop at Sheffield United and everyone at City wishes him the best of luck during his time in South Yorkshire.