ESPN claim Manchester United officials have discussed bringing Sancho back to his homeland but negotiations have since been put on hold.
The two clubs have been unable to engage in constructive talks as Borussia Dortmund slapped an £80million price tag on the 19-year-old.
The Bundesliga outfit are not keen on letting any more of their key assets leave this summer following the departure of Christian Pulisic to Chelsea.
Ole Gunnar Solskjaer is keen to get his business done early this transfer window and he will not be waiting around for Dortmund to change their stance.
It is said the Red Devils are fond admirers of Sancho and assistant boss Mike Phelan has been encouraging the club’s hierarchy to sign the former Manchester City youngster.
The price tag is also a stumbling block which would eat up a large chunk of the budget.
ESPN add that United will not completely rule out making a move for Sancho.
But for now, they have turned their attention elsewhere.
United had been hopeful that Dortmund’s capture of Thorgan Hazard, brother of Eden, would pave the way for Sancho’s exit.
However, the England international, who made his debut against Croatia last year, has hinted he sees his future in Germany.
Dortmund finished second in the Bundesliga table, finishing behind champions Bayern Munich.
And Sancho wants to try and win the top prize next year.
“Next season our target is to win, not come second,” he said.
“I’m really happy with how I played this season.
“I wasn’t playing that much at the start of the season but was in the team more often later on.
“It’s all about hard work.”