Bayern have an option to buy the Portuguese defender for a reported 70 million euros at the end of the season. Cancelo, who has scored seven times in 41 appearances for Portugal, arrived in Munich on Monday and completed a medical on Tuesday for a move that could spell the end of France international Benjamin Pavard's time at Bayern.
The 28-year-old Portuguese defender joined City from Juventus for 65 million euros in 2019 and has a contract with the English champions until 2027. "FC Bayern is a great club, one of the best in the world, and it's enormous motivation for me to now play alongside these extraordinary players in a team," Cancelo said in a statement released by the club on Tuesday.