Sancho will not return to Borussia Dortmund for a third spell, with the club ruling out a move for the free agent despite his availability without a transfer fee.
According to Bild, Dortmund have "excluded" the possibility of re-signing the 26-year-old winger following a series of internal discussions. Sancho's contract with Manchester United expired in June, leaving him without a club, yet the Bundesliga side have decided against offering him a route back to Signal Iduna Park.
The decision comes after weeks of speculation linking Sancho with another reunion in Germany. Teamtalk reported as recently as Tuesday that Dortmund remained interested, and the shock collapse of Konstantinos Karetsas during the Champions League opener had briefly reignited talk of an attacking reinforcement.
Bild identifies three factors behind the club's U-turn. First, Dortmund are committed to a recruitment strategy focused on young, high-potential talents rather than established players on lucrative contracts.
Second, Sancho's wage demands would place him among the highest earners at the club, a financial burden Dortmund are unwilling to shoulder.
Third, there are lingering doubts about his physical condition and fitness levels after a difficult spell in English football.
Sancho left Dortmund for Manchester United in a €85 million deal in 2021 but failed to establish himself at Old Trafford. He spent the 2025-26 season on loan at Aston Villa, where he featured in 39 games, but the club opted not to make the move permanent and instead pursued Alejandro Garnacho.
The England international, who has 23 caps for his country, has previously enjoyed two successful stints in Dortmund's yellow and black. He made 137 appearances across his first spell, scoring 50 goals and registering 64 assists, and was widely regarded as one of Europe's most exciting young wingers.
His combination of close control, vision and end product made him a fan favourite at Signal Iduna Park and earned him a big-money switch to the Premier League.
With Dortmund now off the table, Sancho's options are narrowing. Al-Rayyan of Qatar have reportedly made a lucrative offer, while other European clubs may yet emerge as suitors before the window closes. For the moment, however, a third chapter in Dortmund appears to be definitively closed.