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Schmeichel has kept 4 clean sheets in the 11 games he's played so far.
"It looks certain I'll be going back," he told the Echo
The paper says that Eriksson spoke to Bluebirds' chairman Peter Ridsdale on Friday and confirmed he is recalling Schmeichel on January 2.
Schmeichel will complete the Christmas schedule with Cardiff City before heading back to Manchester..
"I've never played a full Christmas and New Year programme at first team level," he said.
"It's a hectic schedule and I know that, but I can't wait.
"If I had a straight choice I would want to play regular first team football - and that really means staying with Cardiff City.
"But I am Manchester City player and if they want me back that's where I will be. They are my club and where my long-term future is, but right now I simply want to play football."
While maybe not quite as influential a loan player as say Jason Koumas, Schmeichel has fast become a City hero and will be sadly missed if he does leave.
"I've had six seasons at Manchester City and it was great to start the season in the first team," he continued.
"I have also enjoyed my time in Cardiff. It's a good club, a great area to stay and I am playing regular first team football.
"I feel I have learned a lot during my time with Cardiff City and I thank everybody - team-mates, management and Cardiff supporters."