Sancho, currently on-loan at Chelsea, has a deal which includes an obligation to buy at a price of £25m if the Blues finish 14th or higher. However, Chelsea can also send Sancho back to United for a modest penalty fee.
The Mirror says Chelsea are leaning towards the latter option, with Sancho failing to live up to expectations at Stamford Bridge.
However, his former England youth coach Dan Micciche insists a return to Old Trafford can still work out for the winger.
"Jadon would have to play as a left-sided No.10, I couldn't see him play as a wing-back," Micciche told The Sun. "Can he play there? Yeah, absolutely. I think he could play for Ruben Amorim in his system.
"It might actually suit him more - in terms of freeing him up. He wouldn't be hugging the touchline as much, he would in middle of the pitch more and would have more options when he gets the ball."