The Portugal international right-back has been a transformative influence on the Barca rearguard, significantly contributing to their title defence bid.
Cancelo has made an instantaneous impact since arriving at Spotify Camp Nou, clocking up two goals and an assist in eight appearances across all competitions.
He notably bagged the winning goal in the astonishing 3-2 comeback victory over Celta Vigo last month and also scored in the 5-0 rout against Real Betis.
Barca have been extremely delighted with Cancelo’s impact and are already making plans to ensure he remains at the club beyond next summer when his loan contract expires.
However, their financial limitations could pose a significant stumbling block to those plans, especially with Man City reluctant to sanction another loan exit for Cancelo.
The treble winners are desperate to get him off their books but will only sanction a permanent departure while collecting a substantial amount for his services.
After his loan stint at Bayern Munich, Man City wanted at least €70 million for the Bundesliga champions to sign him permanently, but they decided against making such an investment in Cancelo.
Man City are willing to lower their valuation for the cash-strapped Blaugranas but will not go below the €50m mark, which Barca will also struggle to afford.
The Spanish champions are hoping to get a deal done for an initial €25m fixed fee, with the rest of the proposal boasting substantial performance-related add-ons.
Barca are keen to lay the groundwork to resolve the issue as early as possible, and Cancelo’s agent, Jorge Mendes, will also play a crucial role in finalising an agreement.
Cancelo has given Barca his word that he will not pursue an agreement with other clubs, giving the Catalan giants the confidence to negotiate his permanent departure from the Etihad Stadium.
The Portuguese defender will hope to continue his lightening start to life in Spain when Barca host Athletic Bilbao this weekend.
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