Sky Sports Germany reports the 22-year-old midfielder will travel to Frankfurt for talks about a potential switch to the Bundesliga outfit, who secured Champions League qualification with their third-place finish last term. While no medical has been arranged and transfer terms remain undiscussed, the meeting represents a significant step towards thrashing out a deal.
McAtee's frustration at his limited opportunities under Pep Guardiola has reached breaking point. The academy graduate managed just fleeting appearances last season and recognises that regular football elsewhere holds the key to his development. Germany's top flight has become a proven pathway for young English talent, with former City prospects Jadon Sancho and Jamie Gittens both flourishing after crossing the channel.
The timing couldn't be better for McAtee to make his move. Fresh from captaining England's Under-21s to European Championship glory - lifting the trophy after beating Germany in the final - he faces exclusion from Lee Carsley's squad when he turns 23 in October. Breaking into Thomas Tuchel's senior England setup demands consistent club football, something City cannot guarantee.
Frankfurt face fierce competition for McAtee's services. Bayer Leverkusen, Borussia Dortmund, RB Leipzig and Stuttgart have all registered interest in a player City value at £25 million. The Bundesliga's track record of developing English players makes it an obvious destination for someone of McAtee's profile.
Domestic options remain available closer to home. Leeds United, Nottingham Forest and Crystal Palace continue monitoring developments, each capable of offering Premier League minutes that might appeal to McAtee. However, none can match the European football that Frankfurt brings to the table.
City's asking price reflects both McAtee's undeniable potential and their reluctance to strengthen Premier League rivals without appropriate compensation. Whether Frankfurt or any other suitor will meet that valuation remains the crucial question as the transfer window progresses.