The Daily Mail reports that Barry is ready to take a pay cut in order to ensure that the loan move goes through.
Barry has long been linked with a move away from City after having fallen down the pecking order at Eastlands.
Everton are also holding talks with Wigan over a deal for James McCarthy.
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Summer 2016 is set to be a very exciting time for football fans, as this is when the long awaited Euro 2016 tournament kicks off.
Since Guus Hiddink arrived at the helm, Chelsea have improved considerably after a tricky start to the campaign.