Sancho impressed after joining Dortmund on loan in January and featured in the defeat to Real Madrid in the Champions League final.
The 24-year-old’s future at United is uncertain given that he was frozen out under Erik ten Hag, who remains in charge at Old Trafford amid an end-of-season review being carrying out by United’s new partial owners INEOS.
Sancho has a strong connection with Dortmund having initially joined the club in 2017 before leaving for United in 2021.
During his loan spell he produced some encouraging displays and started to play with greater confidence.
According to BILD, Dortmund would ‘love to keep’ Sancho but the German club only have a budget of £65million this summer, which could rule out a permanent deal.
In addition, Dortmund are prioritising strengthening two other positions – a new striker and a defender to replace veteran Mats Hummels, who is expected to depart.