The City midfielder is regarded as one of hottest prospects in the Premier League.
But The Independent says he’s downed tools because he wants a move to London.
Both Arsenal and Tottenham are sniffing around as Sancho vyes for an exit.
The Independent reckon City would receive around £4m in compensation if he signed for one of their rivals.
City have offered the 17-year-old a three-year deal worth around £30,000-per-week.
But he’s spurred their advances because he’s not convinced first-team football is likely at the Etihad.
Reports last month suggested Sancho favours a move to Arsenal because he wants to work with Alexis Sanchez.
An Etihad source told The Sun: “The club is worried Arsenal are frontrunners for Jadon as he has a soft spot for them.
“His family think he might get a quicker path to first-team action at either Arsenal or Spurs.
“One of his heroes is ironically Alexis Sanchez.
“It’s proving difficult to get him to sign his first professional contract here.
“He is a top player, one of, if not the best in the youth system.
“It’s not about the money for him at all.”
City snapped up Bernardo Silva from Monaco earlier this summer.
They’ve also got David Silva, Raheem Sterling, Gabriel Jesus, Kevin de Bruyne and Leroy Sane who can fill the wide positions.
