The 26-year-old – who can operate both on the right and left side of the defence - has caught the eye with a series of impressive displays this term.
Speaking at his pre-match press conference ahead of Saturday’s trip to Southampton, City manager Guardiola expressed his delight at Cancelo’s impact – but challenged the Portugal international to continue to seek to improve.
“He played both sides and his attitude and commitment in every training session is good. He has good physicality, and his recovery is good.
“He is intelligent in the final third. We are delighted with how he is performing, and we know he can do better.
“The last game (Tuesday’s 1-1 draw with West Brom) wasn't his best performance, so we want to try and get the best out of him.”
Play the video to watch Pep’s press conference in full…