Nypan arrived at the Etihad Stadium last summer following a £12.5 million agreement with Rosenborg. He has since found himself in the Championship with promotion candidates Middlesbrough under manager Kim Hellberg.
The 19 year old made 22 appearances for the side but it hasn’t worked out for the Norway international at the Riverside as fans were underwhelmed by his impact in the side.
Now, as confirmed by the club website, he returns to City to continue his development under manager Pep Guardiola.
“He will now return to Manchester where his development will be overseen by Pep Guardiola and the City first-team staff.
“The midfielder will wear the No.41 shirt at City.”
Boro said: “Sverre Nypan has returned to Manchester City after his loan spell was mutually terminated. We’d like to thank Sverre for all his efforts and wish him all the best for the future.”
Fellow City youngsters Jahmai Simpson-Pusey and Claudio Echeverri have also had failed spells at Celtic and Bayer Leverkusen and have since moved to FC Koln and Girona respectively.