Bayern Munich eyeing reduced Joao Cancelo fee as rivals lodge interest

Bayern Munich have already confirmed to Manchester City that they do not plan to trigger their €70m option to sign full-back Joao Cancelo permanently, 90min understands, but the Bundesliga side are keen to do business for a lower fee.

Cancelo asked to leave City in January after falling out of favour under manager Pep Guardiola and ended up joining Bayern on a six-month loan which includes an option to buy at the end of the campaign.

Bayern sporting director Hasan Salihamidzic has publicly admitted it is 'difficult to imagine' triggering their €70m purchase clause, but sources have confirmed to 90min that the Bundesliga side are looking to negotiate themselves a discount.

Talks have already taken place between Bayern and City over a lower figure and it is believed that the Premier League side could drop their asking price slightly, with something closer to €60m a possibility.

While talks between the two sides are ongoing, 90min understands that City have been made aware of interest in Cancelo from elsewhere.

Real Madrid showed interest in the Portugal international when it became clear he was set to leave City, while Premier League rivals Chelsea are also monitoring the situation as they consider a shake-up at left-back.

The Blues have not been convinced by summer signing Marc Cucurella and could even entertain offers for Ben Chilwell, who is understood to be of interest to City, if the right offer was made.

However, sources have confirmed that Cancelo's preference is to remain with Bayern beyond the current campaign. The 28-year-old has already impressed in Bavaria, racking up two assists in his first three outings.

Cancelo's desire to stick with Bayern is mutual but will all come down to money. The club have only spent more than €70m twice in their history, with both Lucas Hernandez and Matthijs de Ligt commanding fees of €80m when they joined from Atletico Madrid and Juventus respectively.

Negotiations are expected to continue, with Cancelo currently happy to ignore alternatives to give Bayern the opportunity to strike a deal.