By Pete O'Rourke, Transfer Correspondent

1st Sep, 2023 | 8:34am

Sources: Sheffield United agree deal for Man City star James McAtee after breakthrough in blow to Nottingham Forest and Wolves

Sheffield United are set to win the race to sign Man City midfielder James McAtee after a breakthrough in talks, sources have told Football Insider.

The 20-year-old also has offers on the table from Nottingham Forest and Leicester City, as well as interest from Wolves.

But United have agreed a deal with City to take McAtee on loan for the season, and the deal is now expected to go through on deadline day (1 September).

It is believed the player is keen to return to Bramall Lane and play in Premier League, after a successful spell on loan at the club last season.

McAtee made 43 appearances across all competitions for the Blades in the 2022-23 campaign, notching nine goals and four assists.

The England Under-21 international has been in the squad for each of Man City’s games this term but has played just one minute of action for the treble-winners.

His contract at the Etihad Stadium is set to run until June 2026.

The creative midfielder’s loan spell at Sheffield United was his first away from boyhood club Man City.

As well as notching 46 goals in 89 games for the Citizens’ youth sides, McAtee has also made seven senior appearances for Pep Guardiola’s side.

Sheffield United have already made nine signings so far this summer but are keen to add more new faces to their squad before the 11pm deadline on Friday (1 September).

Paul Heckingbottom’s side have lost each of their first three league games this term following promotion from the Championship last season.

In other news, Fulham, Burnley and Sheffield United plot late-window move for ex-Liverpool man.