The Athletic reports co-owner Joel Glazer and Woodward were involved in a 'difference of opinion' over Sancho.
It's claimed that Woodward lobbied the United owner into making a higher bid for the England international, with an initial offer of £80m plus add-ons swiftly rejected.
Glazer and other members of the United board were adamant that Dortmund's asking price was unrealistic due to the coronavirus crisis, which remains ongoing.
And, in the end, Woodward was told the deal would be 'too much money'.
United have been impacted greatly by the pandemic, losing £5m for every match played behind closed doors with a return to stadiums for fans still a long way off.
And Woodward was left powerless, with Glazer and the United board ultimately ensuring the deal didn't go through.