The Bundesliga club held talks with Sancho this summer, aiming to secure a deal for the forward, who had recently been added to Manchester United’s growing “bomb squad.”
However, Director of Football Sebastian Kehl has admitted that Dortmund would have needed a major sponsor to provide substantial financial backing to make the move a reality.
"Of course, we also addressed the issue internally at some point, but there must be a feasible economic framework,” Kehl told Bild.
“With the transfers we have made, we have invested approximately £87 million ($117m) in new players, similar to last summer. But there is no state, no sheikh, no billionaire behind us.
“We have to earn our own money and, in the long run, can only spend what we previously earned. We have exhausted our financial possibilities for this transfer period."