The Portuguese international joined Barca on loan for the second time in his career at the start of 2026 - after spending the 2023/24 campaign in Catalonia - and he openly indicated his desire to remain at the Camp Nou after winning a LaLiga title in May.
Barcelona have been in talks with Al Hilal over a deal since the end of the 2026 FIFA World Cup with the 32-year-old now into the final year of his contract in Riyadh.
The Saudi Pro League giants had demanded a €10M transfer fee to facilitate and exit but Barca told Cancelo's camp they wanted him to cancel his contract to seal a move.
That has now been settled, with Cancelo forgoing a significant portion of his salary to untangle himself from Al Hilal, and he will be presented as a Barca player in the coming days.
Cancelo is expected to sign a two-year contract back at Barca and he adds vital cover in both full back slots for Hansi Flck ahead of the 2026/27 season.