Bayern Munich haven't ruled out keeping hold of Joao Cancelo.

The Portugal wing-back joined Bayern in January from Manchester City on-loan to June. The deal includes a €70m permanent option.

Sky Deutschland says Bayern are unhappy with the original fee and wish to reduce terms.

For their part, City are open-minded, with manager Pep Guardiola happy for Cancelo to leave the club outright this summer.

Watching developments closely, meanwhile, are Barcelona.