A source told the Independent the situation is a “war in all directions” with the player wanting to go and the club now wanting to sell.
After an impressive first season with the Bundesliga side, Sancho has had multiple disagreements with the club’s hierarchy.
The 19-year-old winger missed a team briefing and training session ahead of Wednesday’s 3-1 Champions League defeat to Barcelona, after he received a suspension in October for returning late from international duty.
Sancho has since stated he is “not allowed to talk”.
Dortmund were reportedly willing to letting Sancho leave in the summer for the right price but they are now thought to be agreeable to letting the star winger leave in January.
Sancho would likely cost close to £100m but Dortmund may be forced to lower their asking price with the player seemingly unhappy.
The England international has been linked with both Manchester United, Real Madrid and Liverpool, with former Red Jamie Carragher urging his former team to move for him.
The position of manager Lucien Favre could also impact the player’s future with the Bundesliga club considering sacking the Swiss after a run of poor results.