The Borussia Dortmund winger has been made a priority transfer target at United this summer due to his hugely impressive performances in the Bundesliga.
The England international has contributed 14 goals and 15 assists for the German giants to convince United boss Ole Gunnar Solskjaer to place him at the top of his shortlist.
However, it has emerged that this is not the first time the Red Devils have tried to sign Sancho, as a deal was nearly agreed back in 2017.
The club was closely monitoring Sancho when Jose Mourinho was in charge, according to the Manchester Evening News.
Three years ago, Sancho was even told the deal was "doable", but he eventually opted for the guarantee of first team football that came with the move to Borussia Dortmund.
The report also claims that City were so relieved not to lose their starlet to their local rivals that they have now included special clauses in other youngsters' contracts.
For example, Brahim Diaz's sell-on clause will rise to 40 per cent if he joins "another Manchester club" in the future thanks to a contract clause inserted as part of his move to Real Madrid last year.
Amid rumours that Sancho may command a price tag of £100m or upwards, such a clause would mean City would pocket £40m if he was sold to Manchester United.
However, there is no such agreement between City and Dortmund and the Etihad Stadium club can only wait and see if United are able to get the nine-figure deal over the line during the financial constraints of the coronavirus outbreak.
Solskjaer is reportedly ready to hand Sancho United's fabled no. 7 jersey previously worn by Eric Cantona, David Beckham and Cristiano Ronaldo.
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