The Portuguese full-back has given up a significant portion of his salary in Saudi Arabia to secure his release, clearing the last obstacle standing between him and a return to Camp Nou after months of negotiations between the two parties.
A straight transfer between the clubs had initially been discussed, with Al-Hilal valuing Cancelo at around €10 million, but that route has now been dropped entirely in favour of a contract rescission. The 32-year-old had made clear he had no desire to stay in Saudi Arabia and had long expressed his wish to return to Catalonia.
Barcelona expect to finalise personal terms in the coming days, with a signing possible as early as Monday or Tuesday. The move would mark Cancelo's second spell as a Barcelona player after he spent six months on loan at the club last season under Hansi Flick, having previously been unable to force through a permanent deal for financial reasons.
Cancelo's first stint in Catalonia came a year earlier under Xavi Hernández, when Barcelona were keen to keep him but could not compete financially in the market for his signature, prompting his switch to the Saudi Pro League instead.
His most recent loan spell arrived midway through last season, when he joined on 13 January 2026 and impressed sufficiently for Flick to push for a permanent solution this summer.
His versatility across both full-back positions gives Flick a tactical option capable of playing on either side of defence, adding further depth to a Barcelona squad already being reshaped by a busy summer of transfer activity.
The Portugal international, capped at senior level since 2016, has previously represented Benfica, Valencia, Inter Milan, Juventus and Manchester City across a well-travelled career in Europe's top leagues before his move to Saudi Arabia in 2024, where he helped Al-Hilal to domestic honours before growing frustrated with his role under Simone Inzaghi.
Barcelona are expected to offer Cancelo a two-year contract, with the free transfer sparing the club from having to negotiate a fee that would have added further strain to an already active summer transfer budget.