Manchester City ready to offer Joao Cancelo in swap deal to sign Chelsea target - Reports

Manchester City are ready to offer Joao Cancelo as a makeweight in a deal to sign Chelsea target Rafael Leao, as per Calciomercato (h/t Manchester Evening News).

The Cityzens are keen to sign the AC Milan winger this summer. His current deal at the San Siro expires at the end of next season, which could force I Rossoneri to cash in on him.

A report by Football.London claims that Chelsea are monitoring the 2021-22 Serie A 'Player of the Season'. He scored 10 goals and 11 assists in 34 league games last term as Milan won the Scudetto.

Leao is now on course to better that tally. He has netted eight goals and has provided as many assists in 17 games this season.

Manchester City could plan to beat Chelsea to the punch by including Cancelo in a deal for his compatriot. The versatile defender can play as a full-back on either flank and is also adept at playing further up the pitch in midfield.

However, it remains to be seen if the Italian giants will be tempted by such an offer. They don't have a shortage of full-backs, with Fodo Ballo-Toure and Theo Hernandez playing down the left-hand side, while Alessandro Florenzi and Davide Calabria can play on the opposite flank.

They also signed Sergino Dest on a season-long loan deal from Barcelona last summer. The USA international's contract contains an optional clause to make the deal permanent for a fee of €20 million this summer.

Guardiola would be wise to keep a hold of Cancelo unless he plans to strengthen his team's rearguard. Apart from the former Juventus full-back, only Sergio Gomez is a natural option for the Spanish tactician down the left side of his defense.

The 22-year-old, who was signed from RSC Anderlecht last summer, has played just 106 minutes of league football this campaign.

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AC Milan face two hurdles in contract talks with Chelsea and Manchester City target

AC Milan are reportedly at loggerheads with Manchester City and Chelsea target Rafael Leao over a new contract.

As per Gazzetta.it (h/t PlanetAMilan), the club wants to retain the €150 million release clause in any new contract that he signs. The player's entourage wants to lower that amount.

Moreover, Milan want Leao to pay off the €19 million he owes Sporting CP on his own. They have offered the player a yearly salary of €6.5 million — an increase from his current yearly wages of €1.4 — to deal with the matter.

Any new deal with Milan would seriously hamper Chelsea and Manchester City's bid to sign the player. The duo, however, boast the financial capacity to sign a player of Leao's caliber.