The 30-year-old was formerly a major part of Pep Guardiola's plans at the Etihad, helping the Citizens to two Premier League titles in 2021 and 2022.
However, a perceived lack of game time meant that Cancelo grew frustrated in Manchester, with the right-back spending the last 18 months abroad.
For the second half of the 2022-23 campaign, the Portuguese defender moved on a temporary deal to Bayern Munich, winning the Bundesliga with the Bavarian giants.
The Bundesliga powerhouses did not exercise their option to secure Cancelo permanently last summer, and he instead moved to Barcelona on loan for the 2023-24 term.
Man City 'agree' Cancelo deal with Al-Hilal
According to transfer specialist Fabrizio Romano, Manchester City are close to offloading out-of-favour Cancelo to Al-Hilal before the summer window shuts.
The report claims that the Citizens and the Saudi Pro League side have agreed on a £21.1m deal for the right-back, who has never played professional club football outside of the Europe before.
It is understood that Cancelo has completed the first part of his Al-Hilal medical, with a verbal agreement between all parties already sorted.
Heading towards the twilight of his career at the top level, the former Benfica youngster has supposedly agreed to a €15m (£12.6m) yearly salary in the Middle East.
Cancelo is set to end a five-year association with Man City, during which time he has featured in 154 matches for the Citizens, scoring on nine occasions.
Who will be Cancelo's new teammates?
Due to the rise of the Saudi Pro League over recent years, it will not take long for Cancelo to bump into former stars of the European game.
Aleksandar Mitrovic currently plies his trade at Al-Hilal, with the Serbian marksman a force to be reckoned with for Fulham in the Premier League and the Championship in the past.
The obvious sprinkle of stardust in Jorge Jesus's squad comes from Brazilian legend Neymar, although the ex-Barcelona man has not featured since October 2023 due to a cruciate ligament injury.
As well as head coach Jesus, Cancelo is set to link up with another compatriot in the form of Ruben Neves, who lit up the Premier League with his long-range efforts for Wolverhampton Wanderers.