Roberto Martinez’s side were beaten 1-0 by Spain on Monday in the last 16 and will shortly be heading home from the tournament.
According to Diario Sport, Barcelona’s operation to sign Cancelo is “well advanced” and could be completed shortly.
Cancelo is set to sign a two-year contract with Barcelona in a transfer that will cost up to 10 million euros.
The report adds that Cancelo just has a few tax issues to finalise in Saudi Arabia before the transfer can be completed.
The Portugal international spent the second half of last season at Barcelona and impressed on loan in his second stint with the club.
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* [Barcelona: Transfer Rumors & News](/fc-barcelona-transfer-rumors-news)