Bayern Munich and Manchester City have reached an agreement over the transfer of Portuguese back Joao Cancelo from the reigning Premier League champions to the Bundesliga powerhouse on loan, according to football transfer expert Fabrizio Romano on Monday.

The deal includes an option for Bayern to sign Cancelo for good for 70 million euros (about $75.9 million) this summer. Man City acquired him from Juventus for 65 million euros in August 2019. Since then, he has made 154 appearances for the club and scored nine goals with 22 assists.

Cancelo's regular starting role began to change in the 2022-23 season, as he only started in five of Man City's past 14 games. Manager Pep Guardiola preferred Rico Lewis and Nathan Ake in the right- and left-back positions.

ESPN has reported that Cancelo is upset with his situation at the Etihad Stadium and wants to leave. Guardiola agreed to let him go. Though Man City have not offered Cancelo to any club, Bayern made a good bid to bring the 28-year-old star to Allianz Stadium.

Bayern had three straight draws in the Bundesliga since the 2022-23 campaign restarted in mid-January, watching their lead on the standings table shrink to only one point over Union Berlin, which are second. Bayern's regular right-back this season, Noussair Mazraoui, has been sidelined for weeks because of health issues, and there is no clear timeline for his return. Moreover, Benjamin Pavard is likely to leave Bayern this summer.

Bayern will go to the Parc des Princes to play Paris Saint-Germain in the UEFA Champions League Round of 16 first-leg game on February 14. The German giants need to sign a star full-back if they hope to change their prospects in the near-to-distant future. Cancelo seems to be the right choice for that purpose.

According to ESPN, Guardiola has no intention to add more backs to Man City even after Cancelo leaves. They are currently second on the Premier League's standings table and five points behind Arsenal after playing one more game than the Gunners.