On 3 April 2012, Sporting CP's president revealed that Labyad will join the Portuguese team for the 2012–13 season, on a free transfer, signing a 5-year deal contract. However, on 23 May, PSV's technical director Marcel Brands told Dutch media that Labyad's contract was extended for another year since Labyad failed to formally terminate his contract before the legal deadline of 15 May.
On 2 July 2012, he officially joined Sporting. In his first season, he made 20 appearances for the club in which he scored twice.