It is understood that the Trotters will let goalkeeper Joel Dixon secure a move back to Barrow if they finalise an agreement for Trafford.
A report from the Manchester Evening News last month revealed that discussions were taking place between City and Bolton over a deal for the 19-year-old.
Yet to make his senior debut for the Premier League outfit, Trafford was loaned out on two separate occasions during the previous term.
After featuring for Accrington Stanley during the first half of the 2021/22 campaign, the keeper joined Bolton on a temporary basis in January.
Trafford went on to make 22 appearances for the Trotters in the third-tier before returning to the Etihad Stadium at the end of May.
Having secured a ninth-place finish in the League One standings earlier this year, Bolton will be determined to reach new heights in this division in the upcoming term.
In order to have the best chance of challenging for promotion, the Trotters know that they will need to nail their transfer recruitment in the coming months.
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If this latest report turns out to be true, this could potentially turn out to be a great bit of business for Bolton as Trafford produced some encouraging performances last season.
As well as claiming seven clean-sheets in the third-tier, Trafford managed to average a relatively impressive WhoScored match rating of 6.93 in League One.
Unlikely to challenge Ederson for a place in City’s starting eleven next season, the keeper could continue to make strides in terms of his development by featuring regularly for Bolton.
Dixon may also benefit from this switch as he spent the second half of the previous campaign watching on from the sidelines due to the presence of Trafford.
By returning to Barrow, the keeper may be able to go on to play week-in, week-out for the League Two outfit later this year.