The two clubs are at a deadlock over a fee for Sancho, with United believing Dortmund’s asking price is too high given the current economic climate.
The Bundesliga side will now try and tempt the England winger to stay at the club, with an enhanced deal on the £190,000-a-week he currently earns.
Sancho’s annual salary will be increased from 6 million euros (£5.4m) to 10 million euros (£9m).
It will be his third contract improvement since he signed for Dortmund in 2017. His present deals run until 2022.
However, that wage packet is still considerably less than what Sancho would be offered at United, which is believed to be around the £340,000-a-week mark.
