The defender moved to Bayern Munich on loan in January after struggling to play regularly at the Etihad. There are reports that he fell out with Pep Guardiola before he left Manchester.
Real Madrid recently humbled Barcelona in the Copa del Rey and reports claim Xavi wants a new right-back, which means the Barca gaffer is likely to enter the market for another man for that spot.
The Catalans love Juan Foyth of Villarreal. However, the right-back has a release clause worth £54 million, a fee Barca cannot afford now.
This means they have to find another player within their budget and Cancelo could be the answer, not because he will be cheaper than Foyth.
Bayern can make his move for £70 million, an option they are unlikely to take, considering he hasn’t even been their first-choice right-back since he moved to Germany.
However, the former Juventus man likes Barca, and a report on Sports Keeda suggests he will take a huge pay cut to make the move happen if the Catalans approach him for a transfer.
But the Blaugranas must find an agreement with City first before they can add Cancelo to their squad, and it will undoubtedly cost them some good money.
City is not a selling club and can comfortably pay Cancelo’s wages if he remains on their books between now and the end of his contract.