The currently unattached midfielder has been linked with a reunion with his former club for months, with Borussia Dortmund bosses regularly praising the 26-year-old's quality while stopping short of confirming an approach.
Behind the scenes, the situation is understood to be far clearer. According to Bild, Sancho is open to a move back to his old stomping ground and would be prepared to accept a significant pay cut to make it happen, having failed to rediscover his best form during spells at both Manchester United and, on loan, at Aston Villa.
That willingness to compromise is seen as an absolute prerequisite for any deal. Bild reports Dortmund are only willing to offer a maximum basic salary of €5m, and while Sancho is a free agent, sporting CEO Lars Ricken and sporting director Ole Book have no intention of paying a signing-on fee, insisting instead that he accepts a performance-related contract.
Both executives have watched several of Sancho's appearances during his loan at Villa, and scouts were also dispatched to England in spring to run the rule over him.
An internal conviction has reportedly grown that Sancho could rediscover his best form back at Dortmund, where he remains an enormous draw for supporters and previously enjoyed the finest spell of his career between 2017 and 2021 before his £73m move to Old Trafford.
Sancho's time in England since has been largely disappointing, with loan spells at Dortmund and Chelsea failing to arrest a decline that continued during his loan at Villa. Despite that underwhelming form, his undeniable talent continues to attract admirers, and a third spell at Signal Iduna Park would mark a unique chapter in the relationship between player and club.
Any move would not happen quickly. Dortmund are eyeing a potential "last-minute bargain" late in the window, should no alternative successor emerge following Karim Adeyemi's departure to Barcelona, with Sancho also fitting the profile internally identified for a new playmaker.
According to Bild, there has been no direct contact between club and player, with officials wary of raising expectations too soon.