"There are places that you never forget... welcome back to Barca, Joao," said the Catalan club on social media.

"Barcelona and Al-Hilal have reached an agreement for the loan of the Portuguese full-back until the end of the season," continued Barca in a statement.

The 31-year-old right-back spent the 2023-24 season on loan at Barcelona from Manchester City, making 42 appearances.

Cancelo, a regular part of Roberto Martinez's Portugal squad, was not playing frequently for Al-Hilal, whom he signed for from Man City for £21 million ($28 million) in 2024.

La Liga leaders Barca had initially announced Cancelo's arrival on Tuesday before deleting the news and delaying his planned presentation, because of a paperwork issue.

After centre-back Andreas Christensen suffered a knee ligament injury in December, La Liga regulations allowed Barca to use part of the cost of his salary to register a new arrival, helping the financially struggling Spanish giants to bring in Cancelo and bolster Hansi Flick's defence.

Barca visit second division leaders Racing Santander in the Copa del Rey last 16 on Thursday.