The Gunners were interested in signing the Portugal international last summer, but a deal did not materialise with City.

Pep Guardiola 's side considered the Gunners as title contenders and were reluctant to negotiate any transfer with them.

Cancelo has since enjoyed a fine loan stint at Barcelona, and Sport claim that the Gunners could return for him this summer.

City currently value their prized asset at €40m and it is claimed that the Gunners are willing to pay close to that figure.

However, a deal is far from straightforward with Cancelo refusing to discuss terms with any club other than Barca.

He has publicly confirmed his desire to continue with the Catalans and won't be willing to speak with any other side.

City may have to reach an agreement with the Blaugrana. It could be another loan deal with an obligation to buy.

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