The 19-year-old rising star only moved to the Premier League champions last summer.
But his superb reading of the game and composure in possession has already seen him compared to his countryman, City skipper Vincent Kompany.
Denayer spent two years in Anderlecht's youth side before moving to the elite Academy Jean-Marc Guillou, which produced, among others, Kolo and Yaya Toure.
The teenager has been training with the City first team and was part of the the side which played against Dundee in a pre-season friendly.
Along with Aleksander Tonev, whose season-long loan move from Aston Villa was completed yesterday, Denayer will be included in Celtic's squad for the Champions League play-off ties against NK Maribor.
Tonev admitted he had been partly sold on a move north by countryman Stilyan Petrov.
The 24-year-old Bulgarian international agreed terms with the Parkhead club who have the option of making the deal permanent.
Tonev said: "Everybody in Bulgaria knows Celtic. I spoke to Stiliyan and he was very happy for me. I hope I can do as well for Celtic as he did.
"I'm an attacking player, and usually play on the left and I like to create and score goals."
Meanwhile, Legia Warsaw's appeal over their Champions League expulsion will be heard in Nyon early on Wednesday.
The Polish club were booted out of the tournament for fielding an ineligible player against Celtic last week.
The Uefa decision handed Celtic a 3-0 win in the second leg qualifier allowing the Hoops to progress on away goals having lost the first leg 4-1.