The Manchester United flop has impressed in Ligue 1 with Lyon and he has been backed to join the Bundesliga challengers as a replacement for their star playmaker.
Sancho has managed 34 goals and 43 assists in 99 official matches for Dortmund after walking away from Manchester City back in 2017, and he is said to be considering a return to England this summer.
A twist in the deal is that United have a clause in the contract that Depay signed when leaving the club back in 2017, which means that they will be informed and given the chance to match any bid for the player.
According to Manchester Evening News the 26-year-old, who had an underwhelming spell at Old Trafford after joining from PSV Eindhoven in 2015, is being scouted by Dortmund, and United could step away from their clause if it means they can secure the signing of Sancho.
Lyon’s director of football Juninho said of his future earlier this year: "Manchester [United] has a priority if several clubs line up to buy him.
“But we have not received any offers so far. He is really happy right now in Lyon. He deserves the armband like others.
“Rudi (Garcia) will soon make his decision. He is a technical leader. We will discuss an extension of contract by the end of the year.”
Ole Gunnar Solskjaer is keen to improve his squad in order to help them close the gap on Liverpool and Manchester City in the Premier League, having also secured Champions League qualification on the final day of the season.
He said of his plans last month: "Well that's another part of Champions League - financial gain, but that's not in my head.
"The club know what I feel we need and we're going to try to pursue it and let's see where we end up."
Having said of their finish: "I think the boys have done a great achievement, where we were earlier in the season to finish third is fantastic."
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Former United striker Andy Cole said of a move for Sancho to MUTV earlier this month: "You’re always looking to bring in players.
"There’s talk of Jadon Sancho coming in. Would he give Manchester United something different? Of course he would.
"I’m not going to sit here and say, 'Oh no, he’s not good enough!' because of course he’s good enough.
"He’s got pace, he’s got the ability to go past players, score goals and create.”