That is according to Sky Sports and will mean Jovetic will have only 12 months left on his contract at the end of the loan, by which time Inter will be able to buy him for a vastly reduced price.
The Montenegro international joined City from Fiorentina for £22million in July 2013 but has failed to secure a regular first-team place with the Premier League club during two injury-hit years in England.
The 25-year-old who began his career with Partizan Belgrade, has started only 11 league games for City and has made a further 19 appearances from the bench, scoring eight goals.
Jovetic has now been deemed surplus to requirements by City manager Manuel Pellegrini and is set to return to Serie A with former City boss Roberto Mancini at Inter.
Mancini said earlier in the week: “We really need an attacker because we only have two players up front at the moment.
“I already tried to sign Jovetic in my last season with Manchester City but he arrived when I was gone. He can play as a focal point or as a support striker but could also feature on the wings.”