City didn’t want Danilo to leave. Danilo wants to go because he wants more first team starts rather than being a part of the squad. He has the same dilemma as Gundogan, Otamendi and Sane.
City are only looking at Cancelo because they thought they had to, in the same way that we have to look at a CH because Kompany has gone.
But, as yet, there isn’t a buyer for Danilo, surprisingly really. Juventus wanted him originally, which was handy as Cancelo is there, but they changed their mind.
So as things stand we only need a CH and even then there are other options if we can’t find anyone suitable.