The National League North side are managed by former Blues First Team Coach Steve Watson.BCFC
The National League North side are managed by former Blues First Team Coach Steve Watson.
It is a second loan spell of the campaign for McFarlane, who spent a short time with Barrow AFC last month.
The 22-year-old has been a regular for Blues Under-23s this season, making 21 appearances and scoring 11 goals.
However, he has yet to make his first team bow for the Club.
York beat Alfreton Town 3-2 away at the weekend to climb up to 16th in the table.
The Minstermen are next in action on Saturday when they play host to Hereford at Bootham Crescent.