Barcelona end Joao Cancelo transfer interest as Man City retain defensive star

Barcelona are prepared to walk away from their long-standing transfer interest in Manchester City star Joao Cancelo .

The two clubs have been working on a deal to allow Cancelo to return to Catalonia since the start of the summer following his season-long loan spell at Barcelona in 2023/24.

Pep Guardiola previously indicated he would be open to bringing the Portugal international back into his plans if an exit package could not be finalized.

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Cancelo's willingness to reduce his salary allowed talks to progress but City remain steadfast in their determination to secure a £21m ($28m) transfer fee.

That falls outside Barcelona's budget, with the club already forced to offload key stars including Ilkay Gundogan , to maintain financial balance.

Barcelona's preference was for another loan, with a purchase clause at the end of the season, which City rejected, as per Mundo Deportivo .

That created a clear blockage in the negotiations and Barcelona have now stepped out of the race for the 30-year-old defender.

Cancelo remains a target for the Saudi Pro League, but he wants to remain in Europe, and if a compromise cannot be reached he will remain at City for the 2024/25 campaign.