ARSENAL have opened preliminary talks to sign Manchester City star Joao Cancelo, according to reports.
Cancelo, 29, is free to leave City this summer after falling out with manager Pep Guardiola in January.
Pep gave the green light for Cancelo to join Bayern Munich on a short term loan that window.
But the Portuguese international failed to fully establish himself as a key player for Bayern under both Julian Nagelsmann and Thomas Tuchel this season.
And the club are reluctant to meet the £60million buy-out clause in his loan deal that would make the transfer permanent.
That's opened the door for a number of clubs interested in Cancelo, and Arsenal have emerged as the most interested party according to Sky Sports.
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They report that the Gunners have engaged in "early verbal talks" to explore the possibility of signing the full-back, although his preference is a move to LaLiga.
Arsenal boss Mikel Arteta knows Cancelo well having coached him while working as Guardiola's assistant at Manchester City.
But, according to German outlet Kicker, the defender has his heart set on a move to Barcelona or Real Madrid amid interest from both clubs.
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City are reluctant to agree to another loan and will ask for a £43m fee from any club wanting to sign Cancelo permanently.
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That could strengthen Arsenal's position in the race as Barcelona's financial issues mean they will need to sell before they buy.
Madrid will also need to budget accordingly after Jude Bellingham's £115m move to the Spanish capital was confirmed by Borussia Dortmund on Wednesday.
Real also retain an interest in Tottenham forward Harry Kane but Spurs are holding out for at least £100m despite the England captain entering the final year of his contract.
Arsenal are in a comparatively strong financial position to sign the defender, despite planning big money moves for midfielder Declan Rice and Moises Caicedo.
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