The 21-year-old scored his first senior goal and first Champions League goal for the Citizens as a second-half substitute in Tuesday's comfortable 4-0 victory away against Slovan Bratislava, linking up with fellow academy graduates Phil Foden and Rico Lewis before firing home City's four goal in the 74th minute.
McAtee was making his fourth first-team appearance of the season and had previously featured just seven times in all competitions since making his Man City debut in September 2021, just over a year after signing his first professional contract.
The versatile midfielder progressed through City's academy from Under-11s to the Elite Development Squad, and while representing the latter, he was named the club's Player of the Year and Premier League 2 Player of the Season in the 2021-22 campaign.
Nicknamed the 'Salford Silva' by Citizens supporters, McAtee spent the last two seasons on loan at Sheffield United, chipping in with 14 goals and eight assists in 75 games as well as winning their Young Player of the Year award in 2022-23, but he has now be integrated into Guardiola's first-team setup at Man City this term.
'McAtee is not going to start anytime soon for Man City'
Guardiola was full of praise for McAtee after City's win in Bratislava, telling reporters: "Everyone adores him, you have seen the reaction of the players so everyone loves him.
"He scored and had a few more chances. I always had the feeling that I believe more he can play here than he does. Hopefully minutes can help him and show that he is part of that.
"Of course, he will not be a regular player this season but in a lot of games he will help us and when he plays like he did today I can always count on him perfectly."
In response to Guardiola's comments, McInerney has acknowledged that first-team football will be at a premium for McAtee, but he feels that the youngster is capable of developing into a future star at the club if he builds up his confidence and learns from the likes of Foden and Lewis, who have now established themselves as senior players.
"[McAtee is] probably not going to start anytime soon," McInerney told Sports Mole. "Guardiola was very, very, very praiseworthy of him. He's said that James needs to believe in himself a little bit more.
McInerney: 'There is a space for McAtee at Man City'
"He's not going to start 30 to 40 games, but he's going to be useful in moments like [against Slovan]. If City do (need him to play regularly) - and I mean this with the greatest respect to James McAtee, because I know him personally, he's a lovely lad - then something's gone wrong.
"It means Bernardo [Silva], Foden, [Kevin] De Bruyne, [Ilkay] Gundogan are not available. I don't think anyone wants that to happen. Even James would be like 'Oh, that's bad news for Man City'".
"I do think there's a space for him," McInerney added. "Guardiola is obsessed with players who play in the pockets, the small spaces, and James McAtee is a natural at that. He's been educated in that Manchester City way, that Guardiola way, since he was a child. He's been at City since he was about 10, so he's clearly well-versed in what it takes, and you can see that with his movement, his touch.
"It was lovely to see, as a City fan and a lad from Manchester, that his goal (against Slovan) came from a link-up play between Rico Lewis, Phil Foden and then to McAtee. It was a goal made in Manchester, scored in the Champions League. I don't think that's a coincidence that they understand the way to play, the movement, the space.
"As good as he is, and I really do think there's a lot of talent there, if he gets 15 to 20 games this season, maybe 10 starts, 10 to 15 substitute appearances, I think that's a good season for him. Even just to be a squad player, a rotation guy for City. It's the highest level in world football to play for a club of the size of Man City these days, that's a real success for a guy so young."
'Patience is needed for a guy of McAtee's quality'
McInerney feels that McAtee must bide his time as a senior player at City, adding: "I think patience will be a virtue for him. You've only got to look at Rico Lewis taking his time, even Phil Foden, I know he was younger (at the time of his introduction to the first team), but not every pathway is the same.
"Patience is needed for a guy of his quality. Gundogan is not getting any younger, Kevin De Bruyne isn't getting any younger, Kovacic, Bernardo are both around 30 now as well, so there is potential for him to break into the City side if he stays around and learns from them.
"If he stays, maybe next season, instead of 20 appearances there'll be 20 starts, and maybe the season after that, you're looking at 40 or something like that... it takes time just to adapt and learn the ways and feel like you belong and a lot of that, I reckon, is the issue with James McAtee - just confidence.
"I've been watching him for several years at different levels and I know how talented he is. He is playing a little bit within himself right now, because it's probably hard to try and be the main man when he's surrounded by geniuses who have won the lot.
"Brilliant player, so much potential, and I was delighted to see him get his first goal [against Slovan], because I think it could be the first of many."
McAtee is set to remain in Guardiola's matchday squad for Man City's Premier League clash with Fulham at the Etihad Stadium on Saturday before the international break.