Having completed the signings of defensive midfielder Rodri from Atletico Madrid and left-back Angelino from PSV Eindhoven, City manager Pep Guardiola had been hoping the addition of Cancelo to provide competition at right-back would end his business in this transfer window.
City were thought to be edging close to a €60m deal to sign the Portuguese star, but according to Sport-English Barcelona could enter the race to sign Cancelo depending on what happens with regards Semedo’s future.
Semedo has been at Barcelona for two seasons and was an important member of the first-team during the last campaign, registering 46 appearances in all competitions.
However, he has recently been linked with a big-money move to fellow La Liga side Atletico, and with Barcelona looking to raise funds for the signature of Antoine Griezmann and perhaps ex-forward Neymar, they are thought to be tempted to cash in on Semedo.
If that is the case, Cancelo is being considered by Barcelona manager Ernesto Valverde.
It is easy to see why Cancelo is a man in demand at the moment. The 25-year-old helped Juventus towards the Serie A title last season with a series of impressive performances, and was also part of the Portugal team which won the Nations League last month.
He has also played for Benfica, Valencia and Inter Milan, and is highly-thought of by managers throughout Europe.
It remains to be seen which club will make a bid first, with Bayern Munich also thought to be monitoring the situation.
City already have Kyle Walker and Danilo as options at right-back, but with both players’ form inconsistent last season Guardiola clearly believes it is an area which could still be improved in his treble-wining team.