“Devante gives us another option at the top of the pitch and we’re really pleased to have him.
"He already has had experience of this league with Barnsley and Milton Keynes Dons.
“He went out last season at 19 and had an impact straight away. Ten goals in total over the two long spells is a good return.
“It’s always hard when you have that first loan out with no league experience but he handled it well.
“Devante has played at England youth level and we’re looking to be the part of the next stage of his development.
“Now we’re looking for him to join us, roll his sleeves up and fight for a place in the team like everyone else.”
Devante - the son of former Manchester United and England forward Andy Cole - joined Manchester City 12 years ago, when he was just seven.
His first involvement with the senior side came in July 2013 when, as an academy player, he was selected for a pre-season tour of South Africa and played against SuperSport United.
Cole netted six goals in the 2013/14 UEFA Youth League and finished as the second highest scorer overall as City made the quarter-finals.
After signing his first pro deal with City in 2014, Cole joined League One Barnsley on August 19, on loan for the first part of last season.
Cole made his professional debut the same day, in a league match at Coventry City, and went on to score six goals in 23 matches for the Tykes.
In January this year he switched to MK Dons and netted three goals in 15 games as the Buckinghamshire side sealed runners-up spot and promotion to the Championship.
At international level, Cole has scored for England's Under-16s, 17s, 18s and 19s.