The Portugal international was a cornerstone of Pep Guardiola's successful Citizens side, before an alleged falling out with the Spaniard saw him loaned out to Bayern Munich for the second half of last season.
Cancelo was not re-integrated into the City team upon returning from the Allianz Arena, though, instead joining Xavi's La Liga champions on a short-term deal for the entirety of the 2023-24 campaign.
The 29-year-old has been central to the Blaugrana's efforts this season with four goals and four assists from 33 matches, helping Barca progress to the quarter-finals of the Champions League, where they will face Paris Saint-Germain.
Cancelo's contract at the Etihad Stadium does not run out until 2027, having signed an extension back in 2022, but he seemingly does not have a future at the club while Guardiola is in charge.
Barcelona pushing to keep hold of CanceloBarcelona president Joan Laporta has made no secret of his desire to keep Cancelo at the club on a permanent deal, although City's €40m (£34.3m) valuation risked pricing them out of a move.
However, Sport now claims that negotiations are now heading in the right direction again, due to Cancelo's unwavering desire to only play for Barcelona for the next years of his career.
It had been suggested that Arsenal — whose head coach Mikel Arteta briefly worked with Cancelo during his time at Man City — could offer the former Juventus man an alternative escape route from the Etihad this summer.
A new left-back is thought to be high on the Gunners' agenda, as Jurrien Timber, Takehiro Tomiyasu and Oleksandr Zinchenko — who also crossed the
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