Manchester United are ready to negotiate a price for Jadon Sancho with Borussia Dortmund after reaching a compromise with the player’s camp over the terms of a five-year contract.

United ended weeks of stalemate on Wednesday when they made a breakthrough in talks over Sancho’s wages and the agents’ fees.

Man united are ready to hand Sancho a contract that will run until 2025 with United having the option to extend it by another 12 months.

However, there is still a significant stumbling block with Dortmund so far unwilling to budge on their demand for a transfer fee of £108million.

United believe that is unrealistic in the current economic market, and are braced for another round of tough negotiations as they bid to sign Sancho before the transfer window closes on October 5.

Manager Ole Gunnar Solskjaer told the BBC on Wednesday night: ‘We all know this year has been a very strange one and it’s important that everyone understands this has an effect on football. Not everyone can spend millions and millions.’

Dortmund have previously insisted the deal is dead and that the 20-year-old England winger would remain in Germany for another season after United missed a deadline of August 10 set by the Bundesliga club.

However, United have refused to give up the chase after making Sancho their No 1 transfer target and will draw encouragement from the latest twist on Wednesday that he can move to Old Trafford in the next month.

They have alternative options in case the deal falls through, but it’s understood that Gareth Bale is not one of them as Real Madrid look to offload the Welshman amid interest from his old club Tottenham.

United hope to sign at least two new players before the window closes – including a new left back – but Solskjaer is wary of making too many changes in the short gap between last season and the new campaign.

‘It’s never easy to have too many new players in the team,’ he added. ‘It takes time for players to gel into units.

‘We have seen some clubs go for the quick fix and get players in, some have trust in the process and the continuation of the process and the coaching.

‘We will have to get the results. Our response has to be about improving, getting the results but also adding players with different qualities than we have and the things that we need.

‘I’m very happy working with these players and the squad. We are always trying to see if there’s any way possible that we can improve this squad and bring players in that will have all the right criteria.’