Having joined Barca on-loan in January from the Saudi Pro League club, Cancelo's deal includes a €15m permanent option.
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Arab media sources say while Barca want to negotiate down that fee, Al-Hilal have no plans to budge on the original valuation.
With Cancelo turning 32 in May, the Catalans see the price as excessive and will use the player's preference to remain with the Blaugrana as a tactic in negotiations.
Since his arrival in the winter market, Cancelo has become a first-choice for Barca, featuring in 12 matches, scoring one goal and providing four assists.
