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The 17-year-old had missed a number of training sessions recently, only turning up sporadically, after being left behind when City travelled to the United States on their pre-season tour.
A number of other youngsters were taken along by Pep Guardiola, but Sancho now feels his omission is a sign that he faces too many obstacles to the first team.
And now The Independent report that he is so determined to try and force though a move he has told the club he sees no future for himself at the Etihad and has returned to London.
Sancho, who played for the Watford academy before moving to City, is being tracked by both Tottenham and Arsenal.
Both north London rivals are confident of being able to persuade Sancho to join, with Spurs already reaching out when they asked for the teenager to be included as part of the deal for Kyle Walker.
Arsenal, meanwhile, can offer him a more lucrative salary – matching the £30,000-per-week on the table at City – while his close friend Reiss Nelson is already at the club.
Sancho’s priority is to force his way into the first team, and he will have to decide if that ambition is better served under Mauricio Pochettino or Arsene Wenger.
He only has one year left on the scholarship deal he signed when he joined City and is yet to pen terms on a professional contract, meaning whoever does sign him will only have to pay a compensation fee of around £4 million.
City still believe they can convince Sancho that they can provide a pathway into the first team, but he is now waiting in London for the club to release him and allow him to seal a move back to his hometown.