Chelsea have opted against signing Jadon Sancho permanently and will send the England international back to Manchester United. The winger joined the Blues last summer on a loan deal that included a £25 million obligation to buy.

Everything appeared to be on track until reports emerged suggesting Chelsea were reconsidering the deal. However, a string of impressive performances towards the end of the season — including a goal in the UEFA Europa Conference League final — led the club to reopen discussions with the player.

Chelsea attempted to negotiate personal terms with Sancho, but talks broke down as the 24-year-old was unwilling to take a pay cut. As a result, Chelsea have decided not to activate the purchase clause. Instead, they will pay Manchester United a £5 million penalty fee and return the player to Old Trafford.

Sancho registered 13 goal contributions for Chelsea this season.

Manchester United will now have to look for a new buyer, with the player currently listed for sale and just one year remaining on his contract.