The 22-year-old is yet to make a competitive appearance for City, despite boasting eight caps for Belgium.
Fierce competition for places at the Etihad Stadium continues to keep him on the fringes of the fold and force him to seek regular game time elsewhere.
City are happy to continue sanctioning spells elsewhere, with loan moves of greater benefit to all concerned at present – particularly those in familiar surroundings.
A statement released by the club on their official website read: “It will be the 22-year-old's fourth successive season-long loan deal having previously spent campaigns with Celtic, Galatasaray and Sunderland.
“His first spell with the Super Lig club came during the 2015/16 season when he played 28 times and claimed an assist in the Turkish Cup final.
“A previous winner of the PFA Scotland Young Player of the Year, the central defender has so far won eight caps for Belgium and made 99 career appearances at club level.”
Denayer committed to a five-year contract with City in July 2015, so still has three seasons left to run on that agreement.