The Portugal international fell out with Pep Guardiola in January and was sent on loan having fallen behind youngster Rico Lewis in the Spaniard’s pecking order.
Cencelo made 11 starts under Tuchel and came on as a second half substitute in Saturday’s chaotic Bundesliga title decider against Koln.
Earlier this month he indicated he was delighted with the speed at which Cancelo had integrated and that the player appeared happy in Munich.
‘I have the impression that he feels very comfortable here,’ said Tuchel. ‘But in the end all parties are part of the decision.
‘His desire in training is unique. I have the feeling that he is really happy here. We’ll discuss everything else after the end of the season.’
Bayern retain an option to make the former Juventus star’s move a permanent one at a cost of €70m but, according to Fabrizio Romano, they have opted against activating that clause.
Sorry, the video was not found
Arsenal, meanwhile, retain an interest in the versatile full-back with Mikel Arteta keen to add further strength in depth after his team ran out of steam in the final weeks of the season.
Takehiro Tomiyasu is unlikely to be fit for the start of next season following the serious knee injury he sustained in March and Kieran Tierney almost certain to depart amid interest from Newcastle.
City are said to be reluctant to sell another of their senior players to Arsenal after the impact both Oleksandr Zinchenko and Gabriel Jesus had in their maiden campaigns in north London.
The Premier League, however, remains City’s best chance of attracting a significant fee with Barcelona, who also retain an interest, focusing their summer efforts on returning Lionel Messi to Camp Nou.
MORE : Micah Richards backs Arsenal, Man Utd, Liverpool and Chelsea to challenge Man City next season in thrilling Premier League title race
MORE : Ray Parlour’s end of season Arsenal awards including Player of the Year, Unsung Hero and Most Improved Star
For more stories like this, check our sport page.
Follow Metro Sport for the latest news on
Facebook, Twitter and Instagram.
Stay connected with us on social media platform for instant update click here to join our Twitter, & Facebook
We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.
For all the latest Football News Click Here
