The 22-year-old was once thought of as England’s next great hope, but he has struggled with a series of injuries and a lack of paying time since completing a £16m switch to the Etihad Stadium from the Liverpool-based outfit two years ago.
Rodwell has managed just nine starts for the Sky Blues, and has all but disappeared from the England set-up after winning three caps following his 2011 debut.
But Roberto Martinez is keen to offer him a chance to get his career back on track on Merseyside.
The midfield ace graduated from the Toffees’ youth academy before making almost 100 appearances for the Goodison Park club, where he was held in high regard by the fans.
A loan move back to Everton was mooted in January, but after City failed to land Fernando from Porto Manuel Pellegrini pulled the plug.
However, he is more than willing to ship out the youngster in the coming window as he plots his own transfer business.
A season-long switch looks to be Everton’s preferred option, with Martinez looking to assess Rodwell’s fitness after an injury hit few years.
City are more open to a permanent deal, but it is thought that the starlet is open to either option.