The Gunners are long-term admirers of the Portuguese ace and they tried to sign him last summer before his move to Barcelona.

Cancelo has had a good time in Spain with eight goal contributions thus far and he is said to be keen on continuing with them.

However, City are unlikely to sell him on the cheap this summer and it is claimed that he could be sold for a fee of €45 million.

Barcelona, on the other hand, can only afford another loan with an option to buy for around €25m at the end of the campaign.

Arsenal are still interested in landing the Portuguese ace and it is claimed that they could return for his services this summer.

City were reluctant to do business with the Gunners last year due to their title rivalry and it is left to be seen whether this changes.

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