Walker has spent the last eight years at the Etihad Stadium and has made a total of 301 appearances in all competitions, winning 17 trophies including six Premier League titles and one Champions League.
The 34-year-old right-back was heavily linked with a move to Bayern Munich last summer before signing a new Man City contract until 2026, and he went on to make 47 appearances - the majority as captain - for the Citizens last season.
Cancelo, meanwhile, has not played for Man City since January 2023 when he joined Bayern Munich on a short-term loan, before spending last season on loan at Barcelona, chipping in with four goals and five assists in 42 appearances.
The 30-year-old full-back has since returned to Man City and trained with the club during pre-season, although he was left out of the matchday squad for last weekend's 2-0 win over Chelsea in the Premier League.
Walker, Cancelo added to Al-Hilal shortlist
While Walker remains an important first-team figure for Man City, manager Pep Guardiola recently opened the door for Cancelo to be reintegrated into his senior squad for the 2024-25 campaign, although it is understood that a departure would suit all parties.
"About what's going to happen, it depends on his agents and the club," Guardiola told reporters last week when questioned about Cancelo. "In the end, if he has to stay we will treat him like all the other players, with respect, and try to take the best from the huge qualities he has."
A recent report from Sport claims that cash-strapped Barcelona are unwilling to re-sign Cancelo on a permanent basis as they have been turned off by the player's £11.9m (€14m) annual salary.
Cancelo could therefore consider a move to Saudi Arabia, with The Guardian claiming that both the Portugal international and Man City teammate Walker are of interest to Al-Hilal.
The report states that both players have been added to Al-Hilal's three-man defender shortlist along with former Man City youngster Jeremie Frimpong, who has excelled in recent years with Bayer Leverkusen.
Al-Hilal targeting Walker, Cancelo after Alexander-Arnold rejection
It has been claimed that Al-Hilal had originally identified Liverpool right-back Trent Alexander-Arnold as a summer target, but the 25-year-old - who has entered the final year of his contract at Anfield - has no interest in moving to the Middle East.
Al-Hilal are in the market for a new right-back to replace Saud Abdul Hamid, who is expected to depart amid interest from Ligue 1 side Reims and Serie A outfit Roma, the latter of whom are said to have tabled an offer.
It remains unknown as to whether either Walker or Cancelo would be interested in moving to Saudi Arabia, but it has seemingly been made clear that Man City are keen to keep the former and part ways with the latter this summer.
Al-Hilal won a record-extending 19th Saudi Pro League title last season, going through the entire campaign undefeated after picking up an impressive 96 points from a possible 105 available.
Managed by experienced Portuguese coach Jorge Jesus, Al-Hilal already have a number of established stars on their books including Neymar, Aleksandar Mitrovic, Ruben Neves, Sergej Milinkovic-Savic and Kalidou Koulibaly.