After scoring in a trial game for Liverpool's reserves, Graeme Souness was shortly sacked as first-team manager.
Murray scored the quickest ever hat-trick in the Premiership reserve league, with his three strikes coming inside the first 12 minutes.
Villa paid Fraserburgh £35,000 (at the time, the biggest fee received by a Highland League club for a transfer) for his services.
Murray's return boosted City's form but they lost in that season's playoff final to Brighton & Hove Albion.
Murray scored a chip against Australian number one Mark Schwarzer to earn the Robins a 2–2 draw at Ashton Gate, however they eventually lost the tie on penalties in the replay.
A key player in City's promotion push despite a stress fracture to his fourth metatarsal bone restricting him to 37 appearances, he signed a new one-year extension to his contract.
On 15 September, Murray became new Cheltenham Town manager Martin Allen's first signing on an emergency one-month loan, returning to Bristol City on 15 December.