The highly rated 21-year-old, who has been with City’s Academy since the age of eight, made his senior debut for the Foxes in a 4-0 Premier League win over Newcastle United in December 2021.
He has gone on to appear for the Foxes on three further occasions, including twice this term, in victories over Gillingham in the Emirates FA Cup and MK Dons in the Carabao Cup.
McAteer spent the second half of 2021/22 on loan in League 2 with Forest Green Rovers, where he made nine appearances and helped the club earn promotion to League 1 as champions.
He furthered his football education with the Dons, who finished 2022/23 in 21st position in the fourth tier.