The agreement includes a mandatory purchase clause, with Chelsea set to sign the England international permanently for a fee ranging between £20-25 million next summer.
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Sancho, 24, joined Manchester United in a £73 million transfer from Borussia Dortmund in July 2021, but his time at Old Trafford has been challenging.
Over the course of three seasons, he made 83 appearances but faced difficulties, including a publicized dispute with manager Erik ten Hag, which led to him being excluded from first-team training.
In January, Sancho briefly returned to Borussia Dortmund on loan before rejoining United in the summer.
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However, he has yet to be included in the squad for either of United’s Premier League matches this season.
Sancho’s last appearance for the England national team was in 2021. He has since been overlooked for major tournaments, including Euro 2024 and the 2022 World Cup in Qatar.
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