The England international had been identified as one of the players the club wanted to bring in this summer to rejuvenate their fortunes, but those plans have now been jeopardised.
Sancho has enjoyed a standout campaign in the Bundesliga where he has scored 11 goals and provided 14 assists as the club continue to push Bayern Munich all the way for the title.
His form hasn’t only caught the eye of Gareth Southgate, but also United chiefs who believe he could play a big part in the club’s future.
According to The Sun, their pursuit of the 19-year-old will now have to wait because Sancho has decided that he wants to stay with Dortmund for at least another season.
The former Manchester City man has become a trailblazer for young English talent to move abroad, particularly to Germany where clubs are willing to take a chance on young players.
Sancho is not prepared to give up everything he sacrificed when he moved to Dortmund just yet and he wants to repay them for the faith they have shown in him.
Moving away from home as a teenager has not been easy for him but he is now reaping the rewards for the bravery he’s shown in making such a crucial a step in his career.
While Manchester United are one of the biggest clubs in the world, they still have some work to do before they are competing for the biggest prizes in club football again.
Sancho has seen the likes of Marcus Rashford and Anthony Martial’s progression halted by rotation and he is quite happy playing every week under Lucien Favre.
That’s not to say United doesn’t appeal to the winger and it’s likely they will return for him next summer should a deal not come to fruition.
United hero Rio Ferdinand said back in March that he would love to see Sancho at Old Trafford.
“I would take him [at Manchester United] all day,” he told Goal.
“English, young, hungry and talented, that’s all I need to know.
“He has got mentality. The mentality is a big part of it all, whether he has the physical attributes or not.”
Sancho is set to feature in the Nations League finals in June for England after impressing on international duty, particularly against the Czech Republic.