The Portuguese defender has been frozen out for over a year, with City allowing him to join Bayern Munich on loan in January. This was followed by a summer move to Barcelona where he has made an immediate impression under Xavi.
Regarded as one of the worlds best in his position, Cancelo lost his place just as Guardiola decided to tweak the system. Rico Lewis also emerged from the youth setup while Nathan Ake developed into an inverted full-back, a role Josko Gvardiol now fills.
A report from Mundo Deportivo now claims the &aposfeud&apos has not been resolved and Cancelo is prepared to exit City permanently should Guardiola stay in charge. Barca are understood to be keen on signing the 29-year-old permanently at the end of the season.
Elsewhere, Tottenham Hotspur are reportedly expressing an interest in Kalvin Phillips, claim Football Insider. The England international is another who has struggled for minutes under Guardiola, although their relationship remains intact.