Joao Cancelo is set to leave Manchester City on a permanent transfer after the Premier League champions agreed a £21m deal with Saudi Arabia side Al Hilal.

Saudi Pro League side Al-Hilal have Manchester City's England defender Kyle Walker and Portugal full-back Joao Cancelo on their transfer shortlist.

Manchester City will not accept a fee lower than £25m for Portugal defender Joao Cancelo, 30, with Barcelona interested in signing him on a permanent deal after a loan spell.

Barcelona could struggle to hold on to 29-year-old Portugal full-back Joao Cancelo, who is on loan from Manchester City, beyond the end of the season. The Spanish giants can only afford another loan deal but City want to sell and Saudi club Al-Hilal are interested

Barcelona will seek to extend the loan of Portugal full-back Joao Cancelo, 29, from Manchester City for another year.