Barcelona are reportedly expected to hold talks over a permanent deal for Manchester City loanee Joao Cancelo.

The Portugal international is currently on a season-long loan deal after joining Barcelona in the closing stages of the summer transfer window.

Since arriving in Catalonia, Cancelo has become a regular fixture in Xavi's lineup, having started 15 of his 16 competitive appearances.

Cancelo, who has been utilised as a right and left full-back this season, has contributed in the final third, chipping in with three goals and two assists.

The 29-year-old played a starring role in Tuesday's 2-1 Champions League win over Porto, scoring a 32nd-minute equaliser before teeing up Joao Felix to score a second-half winner.

With Cancelo proving his worth to Barcelona, Sport are reporting that the La Liga clubs are planning to open negotiations over a transfer.

Man City will be open to a permanent departure, with Cancelo no longer a part of Pep Guardiola's plans following a fall-out between the pair last season.

As a result, Cancelo spent the second half of the 2022-23 campaign with German champions Bayern Munich, where he registered one goal and six assists in 21 competitive appearances.

While Barcelona are keen to recruit the 29-year-old on a permanent basis, Man City's asking price could prove to be a stumbling block.

With Cancelo under contract until the summer of 2027, the European champions would be looking to receive a fee in the region of €50m (£43.1m).

However, Barcelona are hoping to bring that figure down to €30m (£25.9m) due to their financial issues, which continue to hamper their transfer business.

There is a suggestion that the two clubs could compromise on another season-long loan move with an option to buy at the end of the 2024-25 season.

Although it remains to be seen whether Cancelo's long-term future lies in Barcelona, he will currently be focused on Sunday's crucial league meeting with Atletico Madrid.

Barcelona are sitting in fourth position in La Liga and level on 31 points with Diego Simeone's side, who occupy third place.