Arsenal have initiated discussions with Manchester City regarding the potential transfer of highly-rated Portuguese international Joao Cancelo during the upcoming summer transfer window.
The 29-year-old fullback is poised to depart Manchester City after being loaned out in January, a surprising move for a player who had previously been one of Pep Guardiola's standout performers.
Cancelo made a significant impact during his loan spell at Bayern Munich, but the Bundesliga club decided against exercising their option to make the move permanent due to their reluctance to meet the £60 million buy-out clause stipulated in his loan agreement. As a result, Arsenal, Real Madrid, and Barcelona have entered the race to secure his signature.
Arsenal has emerged as a strong contender in the pursuit of Joao Cancelo. Manager Mikel Arteta previously worked with the player during his time at Manchester City.
Arteta made successful acquisitions from Etihad last summer by signing Gabriel Jesus and Oleksandr Zinchenko, both of whom significantly elevated Arsenal's performance levels as they challenged Manchester City for the Premier League title.
However, there are concerns at the Emirates Stadium that the Premier League champions may be hesitant to engage in transfer negotiations with Arsenal this summer due to the positive impact Jesus and Zinchenko had in transforming the North London club into title contenders.
While Arsenal has commenced initial discussions for the player, it has been revealed that Cancelo's preferred destination is Spain, with Real Madrid and Barcelona being the primary contenders.
According to a German news outlet, Cancelo has expressed his desire to join either of the Spanish giants in a potential deal worth up to €50 million (£43 million). Manchester City appears reluctant to agree to another loan arrangement for the 29-year-old, especially considering that his contract has four more years remaining after recently agreeing to a two-year extension on his original six-year deal last summer.
Barcelona's current financial situation necessitates the sale of several players as they prioritize bringing Lionel Messi back to the Nou Camp.
Real Madrid, on the other hand, is eager to strengthen their defensive options but is currently focusing on securing a replacement for Karim Benzema. There are also reports suggesting that the Spanish club's primary transfer targets include Jude Bellingham, Kylian Mbappe, and Harry Kane.
This situation could potentially provide Arsenal with an opportunity to swiftly secure a deal for Cancelo. However, it appears that midfield reinforcements are considered a higher priority for the club, with a significant move to bring in Declan Rice believed to be at the top of their agenda.