Barcelona 'make progress in bid to beat Arsenal to defender signing'

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 Cancelo

Barcelona 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 City-Arsenal divide in 2022 - have all struggled with injuries during their time in North London.

However, Arsenal will ostensibly have to look elsewhere to bolster their full-back ranks, as Barcelona are planning for the future with Cancelo and have informed the Portugal international as such.

Cancelo to reject offers from elsewhere

Even if the erstwhile Valencia man receives lucrative contract proposals from elsewhere, he will reportedly turn them down due to his yearning to continue in the Barcelona shirt beyond the end of the season.

La Blaugrana supposedly informed Cancelo in February that they viewed him as part of their long-term project, at which point the City loanee pre-emptively gave the green light to a permanent deal beyond the summer of 2027.

While salary caps could still present an obstacle for Barcelona, the Spanish champions are still hopeful of concluding a transfer this summer, otherwise they could try to negotiate another loan deal with an option or obligation to buy in 2025.

Man City were apparently hoping to spark a bidding war between Arsenal, Chelsea, Bayern Munich and clubs in Saudi Arabia, but Barca are now optimistic of getting a deal over the line before Euro 2024.

In addition to Cancelo, La Blaugrana are also working on a permanent move for his compatriot Joao Felix, whose Atletico Madrid career also appears to be dead in the water due to his broken relationship with Diego Simeone.