Cancelo spent last season on loan with Inter Milan, but the Nerazzurri failed to exercise their option to buy and the 23-year-old is set to return to parent club, Valencia.
United boss Jose Mourinho is keen to bring in competition for Antonio Valencia, 32, and following Southampton’s successful fight against relegation, discounted Cedric Soares, 26, as a potential target.
Valencia rate Cancelo at £30m which hasn’t deterred Jose Mourinho’s interest in his compatriot. The right-back made 2 appearances for Benfica’s first team before moving to the Mestalla where he made close to 100 club appearances.
Cancelo was a member of the Internazionale side which qualified for next season’s Champions League with a dramatic last-day win over Lazio in Rome.
Despite being included on the preliminary list, Cancelo didn’t make Portugal’s final 23 for this summer’s World Cup finals in Russia.
Meanwhile, reports from Italy suggest that Manchester United and Juventus have agreed a deal for 28-year-old left-back.
Frozen out by Mourinho, Darmian gave his word to Juventus that if he left Old Trafford, he would return to Turin, this time to wear the shirt of the Bianconeri.