Man City 'reach agreement in principle' for Joao Cancelo exit and more transfer rumours

Manchester City and Barcelona have reached an 'agreement in principle' regarding a loan deal for Joao Cancelo, according to reports in Spain.

Cancelo has been ostracised at City since returning from his shock January loan move to Bayern Munich. The Portuguese full-back was shipped out after growing frustrated at Pep Guardiola's rotation policy and subsequent lack of guaranteed minutes.

Bayern opted against activating their option to buy Cancelo permanently this summer, with Barcelona heavily interested. Talks over a move have been ongoing for some time and now Sport reports that an agreement has been reached.

Barcelona are expected to take the 29-year-old on loan for the season and will have an option to make that move permanent for just over €30million. Cancelo's arrival is said to be just a 'matter of hours' away.

ALSO READ: Cancelo move 'takes a turn' after injury news

Elsewhere, Alan Nixon reports that City are eyeing Lyon youngster Bradley Barcola as one of several potential replacements for Riyad Mahrez.

The Algerian left for Saudi Arabia side Al-Ahli last month, with City banking £30million from the sale. Manager Pep Guardiola has identified a number of potential successors, with Barcola the latest to surface.

City are said to be 'active' in their interest as they look to fill a major gap on the right of their front three. The 20-year-old is entering his third season with the Lyon first-team, having registered five goals and eight assists in 26 Ligue 1 appearances last term.

A France under-21 international, Barcola plays predominantly on the right but can play across the frontline. He is best known for his versatility and pacey dribbling.

The transfer window is in full swing and City have been busy, with