Inter Milan were in talks over a loan deal with the Saudi Pro League club for the 31-year-old and had agreed terms.
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Barcelona have since swooped in and stolen Cancelo from under the Italian side’s noses, with the full back now set to join, according to Fabrizio Romano.
It’s understood that the La Liga leaders will pay €4 million for the loan deal, covering a small portion of Cancelo’s wages.
The deal will run until the end of the season, with no information whether there will be an option or obligation to buy.