Jadon Sancho is set to return to Manchester United after Chelsea opted not to make his loan move permanent, according to transfer expert Fabrizio Romano.

The English winger, who spent the 2024/25 season on loan at Stamford Bridge, will not continue with the Blues after both parties failed to reach an agreement on personal terms despite Chelsea having a £25 million option to make the transfer permanent.

Romano confirmed the development on his X (formerly Twitter) account, stating: "BREAKING: Jadon Sancho leaves Chelsea as there's no agreement on personal terms. Chelsea will pay £5m penalty clause and Jadon returns to Manchester United."

The transfer specialist added that the "story over between Sancho and #CFC" is now complete, with the player "ready for new move in the summer window."

As part of the loan agreement, Chelsea will now be obligated to pay a £5 million penalty clause to Manchester United for not exercising the purchase option after failing to agree on contract terms with the 25-year-old winger.

Sancho's return to Old Trafford comes at a time of significant transition for Manchester United, with questions remaining about his future at the club where he initially struggled to replicate the form that prompted his high-profile move from Borussia Dortmund in 2021.

The development adds another layer to what promises to be an active summer transfer window for both Premier League clubs, with Sancho likely to be the subject of further transfer speculation in the coming weeks.