Dortmund never wanted to sell the player and more importantly also doesn't have to.
Sancho is open it wants to return to England. Therefore, both parties probably made a deal that the player can leave under certain circumstances.
If a football club is willing to pay Dortmund's valuation of 120m Euro until their preseason kicks off (10th of August), they are willing to sell. In return Sancho committed to play another season for Dortmund without making a fuss, if no such offer is submitted.
It might well be that this agreement between the club and player was even part of the contract extension talks earlier this year.
Thus, the transfer was dead once the August 10th deadline passed. Since then there are no articles about Sancho leaving this season in the German press. All Dortmund officials are adamant that the player is staying at least another season. Zero indications in Germany the this transfer could still happen. Very different than the talks about Liverpool and Thiago.
Man Utd management misjudged the situation. They had the chance of signing the player before the deadline by coughing up the 120m Euro but they didn't.
I would be very surprised, if Dortmund would accept a late offer, even if Woodward is then willing to pay the full amount because they never wanted to sell the player in the first place.
If this is smart stance from Dortmund or they will regret this in the future, nobody can tell.
