Manchester City allowed Joao Cancelo to join European rivals Bayern Munich on deadline day in January without even demanding a loan fee after the player’s relationship with Pep Guardiola declined

Joao Cancelo’s sudden and surprising exit from Manchester City saw the club waive any loan fees.

The Portugal star joined Bayern Munich on deadline day for the remainder of the season after falling down the pecking order in recent weeks. Cancelo had been a star player under Pep Guardiola but found himself on the bench – to the surprise of many.

It has since emerged that he and Guardiola have fallen out, with the Catalan citing the defender’s behavior as a problem, according to Athletic. City have seen Rico Lewis thrive in recent months and, as a result, opted to let Cancelo leave without receiving any payment from Bayern, which is rare when a player of his caliber changes hands.

For context, Joao Felix has moved from Atletico Madrid to Chelsea for the remainder of the season and the Blues will pay around £10m for the pleasure. Bayern sporting director Hasan Salihamidzic told Bild no amount had been paid, but said: “The fact that Cancelo is working without pay is due to the network.”

Bayern and City have been negotiating in recent years over a move for Leroy Sane, who remains at the Allianz Arena. Cancelo’s future beyond the end of the season is unclear, but the player himself has played down any dispute with Guardiola, insisting his switch is all about game time.

“I haven’t had much game time in the last few weeks, which influenced my decision. It has nothing to do with my relationship with Pep,” he said at his unveiling as a Bayern player.

The German champions, who are seeking another Bundesliga win, do have an option to add Cancelo on a permanent basis for £61m – but Salihamidzic has admitted that fee may be out of reach for the Bavarians. He said: “We played with an open card. The most important thing is that Joao feels comfortable in Munich and can feature in the second half. But we also told him clearly that this amount is difficult for us to imagine in the next few years.”

Cancelo has already made his Bayern debut, providing an assist in the win over Mainz. Guardiola has spoken about the future of his current playing group following his sudden departure: “What happened with Joao makes it seem like everyone is leaving – and I’m not saying that. But at the end of every season, it happens that we talk to a lot of players.

“It has been since we arrived. Maybe next season we will continue with all the players or maybe some new ones. Now that the transfer window is closed, we can focus on the next four months – and after that, we’ll see what happens.”