Brian Little confirmed City's interest: "We are interested in bringing him back. It's something we've enquired about and we're hoping something might happen later on in the week. At the moment though it's too early to say it will, or even might happen. We'll just have to wait and see."
Reddy has been suffering from a hamstring injury, but played 45 minutes of the Mackems' Reserve game at Manchester City last week, and says that he is keen to get back playing.
He said prior to that game: "It has been a nightmare - the most miserable time I've had at Sunderland. I've only been fit for something like a month all season.
"I'm desperate to get a game under my belt and my ultimate aim is to get involved with the first team. I've got a lot of work to do on my match fitness now."
City agreed a deal with the Premiership side last summer to take some of their younger players on loan to gain experience. So far Reddy has been the only one to come down from the Stadium of Light, where he is hoping to push his way into the first team frame. However with chances limited he may see this as an opportunity to get some football under his belt following injury.
Meanwhile Neil Roberts has returned to Wigan Athletic following a month-long loan spell with City. He failed to find the net in his time here, and with Rodney Rowe ready to return the club have decided not to follow up their interest.