Bayern Munich‘s sporting director Hasan Salihamidzic has confirmed that the club will not pay a loan fee for Portugal star Joao Cancelo, according to reports.

Cancelo joined the German giants on an initial loan deal with a £61million buy option at the end of the season after falling-out with City boss Pep Guardiola.

And it’s now been revealed that the Bundesliga champions will not have to pay a single penny during Cancelo’s temporary spell in Germany.

According to Bild, Salihamidzic confirmed that the Cancelo deal had been agreed without a loan fee.

The 46-year-old said: ‘The fact that Cancelo worked without a fee is due to the network.’

The apparent ‘network’ between the two sides may have been established during the transfer of winger Leroy Sane, who traded Manchester for Munich in 2020.

Portuguese full-back Cancelo secured a deadline day move to Bayern after reports that he’d fallen out with both players and staff in Manchester.

According to The Athletic, Cancelo’s behaviour in training was feared to be affecting the rest of the squad.

It was reported that City coaches believed he was not paying attention in tactical meetings after being consistently left out of the starting XI.

Sportsmail exclusively revealed last week that Cancelo had a heated training ground bust-up with City boss Guardiola, which prompted the him to seek an exit.

The confrontation occurred after Cancelo was snubbed during Manchester City’s FA Cup fourth-round victory against Arsenal last month.

The fall-out from that day resulted in the full-back securing a last-minute move to the Allianz Arena on loan but could be made permanent if the buy-out is triggered.

However, it was only recently that Salihamidzic claimed that the £61m clause in the contract may be too extortionate for the Bavarian side to pay-out.

Salihamidzic told Bild: ‘We play with open cards. The most important thing is that João feels comfortable in Munich and can perform in the second round.

‘But we also told him clearly that this sum is difficult for us to imagine in the next few years.’

There is hope that Bayern Munich might be able to reduce Man City’s asking price for Cancelo following his loan spell at the German giants.

Cancelo hit the ground running in Germany and managed to record an assit on his debut for the club during their 4-0 win over Mainz in the Bundesliga.

SOURCE: dailymail.co.uk