The Red Devils reached an agreement with Sancho over a contract that runs until 2025, but the club remains in negotiations with Borussia Dortmund over a fee for the talented winger, according to Ed Aarons and Fabrizio Romano of The Guardian.
Sancho is expected to become the most expensive British footballer once the two sides agree to a fee, which The Guardian reports could be worth as much as €120 million (£108 million).
An initial fee of €100 million will reportedly be paid by United over three installments, while Dortmund could earn an additional €20 million in regard to performance-related incentives as agreed to by the Premier League club.
At United, Sancho will be one of the highest earners in Ole Gunnar Solskjær’s team after signing a five-year contract worth £250,000 a week.
News of the deal nearing completion comes a day after Dortmund reportedly set a deadline of Aug. 10 for interested teams to complete a move for the 20-year-old English international.
Finalizing the deal next week will afford the German club enough time to find a replacement before the Bundesliga season kicks off in September.
Sancho has evolved into one of the sport's brightest young stars since joining Dortmund from Manchester City in 2017. He ended last season with 17 goals and 17 assists over 32 Bundesliga appearances.
It's understood United were able to intensify their pursuit of Sancho after reaching an agreement to sell Alexis Sanchez to Inter and offloading a portion of his contract, which is worth around £390,000 per week.