A new report from The Guardian on Monday claims the 22-year-old attacking midfielder is being pursued by two London clubs.
West Ham and Fulham are tracking the Englishman ahead of the January window, and despite being “highly regarded,” City remain open to selling homegrown talents.
McAtee previously earned high praise from manager Pep Guardiola but has made only six appearances this season.
One of these was a selection off the bench in the Champions League, where he scored against Slovan Bratislava.
West Ham and Fulham, meanwhile, are looking to add some creativity to their midfielder for the new year to help their Premier League
The Cottagers sit seventh in the table while the Hammers are 14th.
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