The 22-year-old Northern Irishman has been at Tannadice Park for a year after signing from Rangers last summer in a deal worth £150,000.
He made 7 starts and 11 substitute appearances last season, operating both on the wing and up front. Previously he made 4 appearances for Rangers after signing from Linfield in 1997.
City are known to be looking at signing another striker, having already had a offer for Wolves' Colin Larkin turned down. There is no official word either side of the border on the Carson reports.