The 19-year-old became one of European football’s hottest properties last season after a superb campaign with the Bundesliga club.
A source described the situation as a “war in all directions” after a range of incidents soured the rapport between the former Manchester City man and his current employers.
Sancho was suspended in October for returning late from international duty with England, while the Dortmund hierarchy were enraged by his representatives' efforts to find him a new club early despite agreeing to let him leave during a summer window for the right price.
The club are now looking at dishing out a fine to the youngster after he turned up late for a team briefing and training session before their 3-1 Champions League defeat to Barcelona this week.
However, the uncertain future of under-pressure manager Lucien Favre could play a part too.
The Swiss risks being sacked after a poor period of form, but a suitable successor has yet to be decided on and a new man in charge could have an influence on Sancho’s future.
But for now, Dortmund are willing to listen to offers in January, with most of the Premier League’s biggest clubs showing interest.
Real Madrid are also interested and could look to make Achraf Hakimi’s loan move to Dortmund permanent as part of a potential deal.
The German club are likely to demand a transfer fee of more than £100 million for Sancho, who has six goals and nine assists in 18 appearances this season.
Get the best features, fun and footballing frolics straight to your inbox every week.
Thank you for signing up to Four Four Two. You will receive a verification email shortly.
There was a problem. Please refresh the page and try again.