Manchester City could face a fresh transfer headache regarding Joao Cancelo, after Barcelona set a maximum transfer fee to sign the player permanently.

The 29-year-old completed a late summer switch to Barcelona on Deadline Day, moving to Catalonia on a season-long loan, after Manchester City opted against keeping the full-back following a dramatic bust-up in January.

Cancelo moved to Bayern Munich for the remainder of the campaign last season, having been involved in a rumoured training ground incident at Manchester City, despite featuring in 26 games prior to leaving.

The Portugal international signed a long-term contract at the Etihad Stadium in 2022, and was unable to permanently leave Manchester City, as clubs failed to reach the Blues' transfer valuation.

Cancelo has featured in nine matches for Barcelona since moving to the Camp Nou, however the defender's move to La Liga doesn't include the option for the 29-year-old to make the transfer permanent.

Barcelona are reportedly keen to sign the full-back next summer, however the club's continued financial problems could cause a notable stumbling block.

Sport Witness relay a Sport report, which claims that Barcelona have set a EUR25 million maximum transfer fee for the player, which is considered as 'prohibitive' by Manchester City, who value Cancelo at EUR50 million.

Both Barcelona and Cancelo want to complete a permanent move, and the La Liga club believe that they will be able to reach an agreement with Manchester City.

Cancelo's agent, Jorge Mendes, could also reportedly play a 'key' role in a deal next summer, despite Barcelona having set a low 'transfer ceiling figure'.

The 29-year-old was part of Pep Guardiola's pre-season tour of east Asia for Manchester City but wasn't afforded any opportunities during the opening weeks of the new campaign, prior to signing for Barcelona.

Cancelo made 154 appearances over three-and-a-half seasons for Manchester City, winning the Premier League and Carabao Cup.