City put together a £60m proposal to sign Cancelo from Juventus, with the right-sided player brought in to provide competition for Kyle Walker.
Since moving to England, the Portugal international has made eight starts and four substitute outings in the Premier League and Champions League respectively.
However, according to reports in Spain, the 25-year-old is open to making another move at the beginning of 2020.
City are unlikely to give the green light to a deal unless they can bring in a like-for-like replacement. body check tags ::