According to Spanish outlet SPORT, Premier League rivals Arsenal are leading Barcelona in the race to sign Manchester City right-back Joao Cancelo.

Cancelo joined Bayern Munich on loan in January after falling out with Pep Guardiola but the German champions are unwilling to exercise the option to sign him permanently for €70 million.

Cancelo has been one of the best full-backs in the world in the last few seasons. But he finds himself at a crossroads in his career, with his next destination unknown. Guardiola doesn’t want him back at Manchester City.

Barcelona are keen on signing Cancelo but cannot afford to pay €70 million, or even slightly less than that amount, to sign the Portuguese international.

Meanwhile, Arsenal are reportedly contacted Manchester City about signing Cancelo and are now leading the race for the right-back.