The Manchester City defender will now have to self-isolate after testing positive as he follows UEFA protocol to control the virus.
Even if it is negative, the right-back cannot be called back to the squad which will be a blow to the reigning European champions.
Cancelo was expected to play a pivotal role in Fernando Santos’ squad and scored against Israel in their final preparation, offering a real threat down the right side.
Manchester United man Dalot spent last season at AC Milan and the 22-year-old represented Portugal at the Under-21 tournament last month.
“The AC Milan player will replace Joao Cancelo, who tested positive for Covid-19 following a rapid antigen test carried out this Saturday by the health and performance unit of the FPF”, perhaps we read in a press release from the Portuguese Football Federation.
“The Hungarian health authorities were immediately informed and the player – who is doing well – has been placed in isolation.
“The result of the test carried out by the health and performance unit was confirmed by an RT-PCR test carried out on Joao Cancelo also on Saturday and the result of which was known on Sunday morning.
“In accordance with the Covid-19 protocol defined by UEFA before the Euro 2020 matches, all players and members of the entourage were subjected to RT-PCR tests on Saturday.
“The results, with the exception of Joao Cancelo, were negative.
“The Hungarian health authorities have become aware of the respect of the protection procedures, fully respected according to the UEFA protocol, in a group which also has a high vaccination coverage rate and have authorized the national team to respect the planned plan for the European Championship. without any change.
Portugal have arguably the toughest group in the competition and start their campaign against Hungary on Tuesday afternoon.
However, after that, they will then face Germany and then France, with the possibility of facing England in the round of 16.