Arsenal are keeping tabs on Joao Cancelo's situation at Barcelona.

The Portugal wing-back has been on-loan at Barca this season from Manchester City.

Both Barca president Joan Laporta and sporting director Deco have stated they intend to sign Cancelo permanently at the end of the campaign.

However, with no price set, there is a risk of Barca finding City's terms too steep.

The Sun says watching developments are Arsenal, where Cancelo's former City teammates have moved within the past two seasons.

And Cancelo could be tempted, having also worked closely with Gunners boss Mikel Arteta when he was on the staff at City.