The winger has moved to Pirelli Stadium on a one-month deal so he can play against Leicester City in the FA Cup on Saturday.
Drury will then put pen to paper on a new two-year City contract after the weekend in a reflection of his potential.
The 19-year-old joined City's youth set-up six years ago and is highly rated by Roberto Mancini's defending Premier League champions.
Right-sider Drury signed his first professional contract with City in 2011.
Source: Manchester City MAD