Dortmund have announced that Sancho will play for them next season, which may be a negotiating stance, but matches with reports that United and Dortmund are far apart in terms of valuation.
United want to pay 60 million euros up front and the same amount in a mixture of bonuses in instalments, with some suggestions that the 20-year-old England international's wages are also now a sticking point.
ESPN have reported that United are turning their attention to Barcelona's Dembele as an alternative, despite maintaining their interest in Sancho.
Dembele is not the only alternative, with Kingsley Coman and Douglas Costa also mentioned in discussions at the club.
The 23-year-old French international Dembele has not played since February when he underwent surgery on a hamstring injury.
The report claims that Barcelona are open to selling the player after three seasons of indifferent form, and informal talks have taken place over an initial loan deal that would convert to a permanent move.
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