Revealed: Bayern Munich did not pay any price to sign Cancelo on loan from Man City.

• Revealed: Bayern Munich did not pay any fee to sign Cancelo on loan from Manchester City.

Bayern Munich did not have to pay a loan fee to sign Joao Cancelo from Manchester City until the end of the season, according to reports.

After the unexpected January agreement, further information on Cancelo’s loan move to German champions Bayern Munich has come to light. On transfer deadline day, the City fullback signed a short-term loan agreement with Bayern, who reportedly have the option to buy him outright for €70 million (£62 million/$76 million) in the summer.

Bayern’s sporting director Hasan Salihamidzic has now confirmed to Sport Bild journalist Christian Falk that no loan fee was required and explained why: “The fact that Cancelo worked without a fee is due to the network.”

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Despite a loss of form in recent months, Cancelo had established himself as arguably the best in the world in his position, which is why City’s decision to sanction a loan to an elite side such as Bayern raised more than a few eyebrows.

Cancelo insisted on completing the move in search of more regular playing time, while City boss Pep Guardiola echoed the same sentiment.

However, it was reported at the time that the 28-year-old had fallen out with his manager as a result of his reduced minutes, prompting his move away. Guardiola once managed at Bayern, and with all parties aligned on the deal, it moved quickly.

As expected, Cancelo has got off to a flying start in Germany, assisting on his debut, and will serve as a huge boost to Bayern’s domestic and European campaign this season.

The Portugal international is set to feature again when Bayern face Bochum in the Bundesliga on Saturday.