Sancho left Borussia Dortmund in the summer to sign for United in a £75m deal, but things haven't gone to plan.
Woodgate told Ladbrokes: “Things haven't gone exactly according to plan for Sancho since he signed for Man United this summer, and I put it down to the style of play; it doesn't suit him."
He added: “If United replicated Dortmund's approach then it would be a different ball game altogether, but Man United don't play that way; they don't play the sort of football Sancho is used to.
“Jadon Sancho is an extraordinary talent; if you play to his strengths, then he'll come good. There's no doubt in my mind that he'll come good again.
“Put him in the Liverpool team, and he'd be a completely different player, I'm sure."
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