Cancelo, 28, has missed the last three City games, and has found himself behind academy graduate Rico Lewis and Nathan Ake in recent matches as well as, at times, Aymeric Laporte.
However there had been no reports of a possible sale.
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Even in the Athletic report it says that “it is unclear” why Cancelo is being moved now but they do note that Bayern are “long-term admirers”.
Alphonso Davies has been Bayern’s first-choice at left-back but he has suffered with injury problems, whilst on the opposite side no-one has been able to lock down the job, with rumours suggesting Benjamin Pavard could leave in the summer.
Manager Julian Nagelsmann has at times taken to using midfielder Joshua Kimmich in that position.
Bayern are currently top of the league but they have drawn their past three matches, and have surprise-package Union Berlin just a point behind them.
RB Leipzig are one point behind Union while Borussia Dortmund and SC Freiburg, another surprise-package, are just a further point behind Leipzig.
City sit second in the Premier League in their quest to defend their title, five points behind leaders Arsenal who also have a game in hand.
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