The winger is currently on loan at Aston Villa from Manchester United, but his long-term future is unclear as his transfer status opens up this summer.
United are unwilling to continue covering Sancho’s £250,000-a-week wages and will not activate an option to extend his contract. As a result, the 26-year-old is going to become available on a free transfer.
That will mark a remarkable turn for a player who cost £73 million when he arrived from Dortmund in 2021 - and, remarkably, he could now rejoin the Bundesliga side without a fee.
A return to Germany is viewed as a genuine and growing possibility, and Sancho is understood to be open to reducing his salary to facilitate a move. Conversations have been positive at this early stage.
Despite inconsistent spells on loan at both Chelsea and Villa, the winger has regularly produced when at Dortmund.
Sources believe a return to Germany could offer the ideal environment to reignite his career.
Head coach Niko Kovac has already approved the idea of a permanent deal from a sporting perspective. Initial discussions have begun, with more detailed negotiations expected in the coming weeks.
Villa would be open to keeping Sancho in the Premier League if that were his preference, but at present, Dortmund are emerging as the leading destination.
The German club are planning a summer reshuffle of the squad and are targeting good-value opportunities in the market - with Sancho fitting the profile.
His departure from United will close a disappointing chapter, falling well short of the expectations that followed his high-profile move after a long pursuit.
Ultimately, United are now ready to cut their losses and move on, while the player needs to find a way to revive his career.