Manchester City fullback Joao Cancelo has a future at the Etihad Stadium. The Portuguese International was loaned to Bayern Munich in the last January transfer window. However, he has completed his tenure in Germany and is in City's pre-season tour squad.

According to the reports from Fabrizio Romano, manager Pep Guardiola spoke to the media during Manchester City's pre-season tour and shared an update on Cancelo's future. “João Cancelo is here. João has been so important to us in the past”.

“After the loan at Bayern, he is back here and is part of the group. So we will see what happens…”.
Cancelo fell out of favor under Guardiola due to the improvement of Kyle Walker. The England International was usually first-choice ahead of Cancelo, which frustrated the Portuguese defender. Hence, he moved to Bayern Munich to get more game time. However, things didn't improve at the Allianz Arena, as he was a rotational player alongside Alphonso Davies and Benjamin Pavard.
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Both Guardiola and Cancelo have been asked multiple times about their falling out with each other. However, both denied the rumors and the end of the former Juventus man at Manchester City. Guardiola's men won the Treble without a system of fullbacks last season. On the other hand, Bayern Munich refused to make Cancelo a permanent player in Germany. Hence, the Portugal International is in a “lose-lose” situation.
Although Guardiola has welcomed Cancelo back into the pre-season squad, he hasn't denied that he could leave. Until now nothing has been decided as yet. There are reports that Walker's future also depends on Cancelo's fate at the Etihad Stadium.