Manchester City are looking to seal the future of their full-back Joao Cancelo in the summer transfer window. The dynamic full-back spent the second half of the 2022/23 season on loan at Bayern Munich.

According to the reports from Fabrizio Romano, the newly crowned European champions are looking to find a solution for Cancelo before their preseason tour. The former Bayern Munich loanee will be available in the transfer market. There is strong interest from FC Barcelona for him, and Arsenal have also had contacts with the player's representatives.

Arsenal finished second in the Premier League standings behind Manchester City in the 2022/23 campaign. Now, Gunners manager Mikel Arteta wants to build a strong squad spine in this transfer window. The former Pep Guardiola assistant is heavily interested in West Ham United captain Declan Rice.

Arsenal were also reportedly offered Manchester City midfielder Ilkay Gundogan, who doesn't have a contract at the Etihad Stadium beyond this summer. Now, Barcelona have offered a three-year deal to Gundogan, and City are trying their best to keep hold of him. Sky Sports have reported that Arsenal are in verbal talks with Cancelo. There are also reports that Guardiola spoke to Arteta about a potential swap deal involving Kieran Tierney and Cancelo before the 2022 World Cup.

However, the sources believe there is still a gap in valuation between the two Premier League giants. Moreover, Bayern Munich don't want to sign the Portuguese full-back permanently this summer, either. It should be noted that the Bavarians have yet to decide Benjamin Pavard's future this summer.