Talks between the Gunners and Man City are progressing, and Arsenal will lodge their first bid of £35m sometime next week.
It was previously reported that City were looking for at least £50m for Cancelo.
The Portuguese international will help take Arsenal’s back line to the next level.
However it is yet to be seen if City would be willing to do business with Arsenal again following the huge successes of Gabriel Jesus and Oleksandr Zinchenko
Gundogan is on a free so not up to City, if City want Cancelo out then they might have to accept our bid, Barca have no money.