At the moment, City have loaned João Cancelo to FC Barcelona. It was understood that City wanted to sell Cancelo to the Catalans, and that Balde would be used as part of such an exchange.
Now, the situation has changed. City only want money to make Cancelo’s move permanent, and will not accept any player as makeweight in the deal - including Balde.
It’ll be unlikely that Barcelona can offer a lot of money for Cancelo.