The 19-year-old midfielder has been on Sheffield United’s radar for some time but the deal has picked up pace over the last few hours.
A loan agreement is in place between Manchester City and Sheffield United for McAtee to move to the Championship club on loan.
The 19-year-old midfielder has travelled to Yorkshire and underwent a medical with Sheffield United today.
With the wheels of the deal in motion, the Blades are pushing through to get the final agreement over the line.
McAtee is highly-rated at the Etihad and has been allowed to leave on loan to gain valuable first-team experience.
Sheffield United have been forced to rush through a deal as Manchester City fielded more enquiries from clubs in Europe and Huddersfield.
The move will be made official soon and McAtee will spend the rest of the season at Bramall Lane.