Manchester City are preparing a new contract for midfielder James McAtee.

The youngster has been extremely impressive during his loan spell at Sheffield United this season.

McAtee has helped his side to promotion to the Premier League and an impressive run in the FA Cup.

Per The Mail, McAtee may now get to show his first team potential with City next term.

The club will offer him a new deal and then see if he is ready to be integrated to the first team.

Another loan is not impossible, but McAtee does want his chance to show he is City material.