Bayern Munich loanee Joao Cancelo has admitted that it is "a pleasure" to learn of interest from Spanish giants Real Madrid.

The 28-year-old made a surprise temporary switch to the Allianz Arena from Manchester City on the final day of the January transfer window, and he will spend the rest of the 2022-23 campaign with the German giants.

Cancelo had been a key cog in Pep Guardiola's machine in recent years, and started 16 of their 20 Premier League matches earlier this season.

However, the Portugal international lost his regular place in the first team after the World Cup break, starting just three of City's 10 competitive fixtures in all tournaments and not featuring at all on five occasions.

Despite reports of an alleged bust-up with Guardiola, Cancelo has insisted that a lack of game time at the Etihad Stadium was the key factor behind his decision to join Bayern on an initial loan deal, which is understood to include a €70m (£61.5m) option to buy in the summer.

Prior to joining Bayern, Cancelo was linked with a potential switch to Real Madrid in the January window, with The Athletic, via Mundo Deportivo, claiming that the full-back "dreamed" to move to the Santiago Bernabeu.

The report also claimed that Los Blancos considered tabling a bid of €30m (£26.5m) plus €20m (£17.6m) in add-ons to sign Cancelo, but Man City would not have been prepared to accept such an offer.

Cancelo has since revealed that he was unaware of potential interest from Real Madrid, but has expressed his pride to learn of such rumours linking him with "one of the best clubs in the world."

Speaking to Movistar, via Relevo, Cancelo said: "The offer from Madrid did not reach me. The truth is that no, but if they say so...I don't know.

"If a club like Madrid goes after [me], it's a pleasure for me because it's one of the best clubs in the world. I think it's a sign that I'm doing things right."

Cancelo has also opened up on the speculation regarding his exit from the Etihad, adding: "It's true that my signing surprises. I don't know how to answer why I'm leaving City. People who say that I'm leaving because I fight with Guardiola. It's a complete lie.

"I didn't feel important to the team in recent games and I discussed it with the coach, who also agreed, that leaving was the option for me. I have nothing against City, where I have taken the step to the level I wanted to reach, thanks to that I am the player I am.

"I am very grateful to Pep and the club because they gave me everything. I will never forget them and at the end of the year I can return."

Cancelo has since started in all four of Bayern's matches in February, including the 1-0 victory away at Paris Saint-Germain in the first leg of their Champions League last-16 tie on Tuesday.