Sanches, 19, became the most expensive teenager in world football when he joined Bayern in May 2016 but endured a troubled first season in Germany. Despite coming in for a huge fee, the Portugal international made just 25 appearances in all competitions with the midfielder later admitting he had "expected more" from his first season playing under Carlo Ancelotti.
Bayern Munich CEO Karl-Heinz Rummenigge admitted last week that the German giants could negotiate his exit this summer, either on loan or on a permanent deal if any club pays around €48m (£43m, $56m) for his signature.
Ancelotti has also suggested the player may move on if he wants to play next season, an idea Sanches himself is quickly coming around to.
"I am not satisfied with my first year in Munich. Of course, I would like to play more," the midfielder told Sport Bild. "That is why I would like a change and go to a club that can give me more time."
Sanches was intensely linked with a move to Old Trafford in 2016 prior to joining Bayern with Jose Mourinho critical of his side's failure to sign the midfielder from Benfica. Mourinho arrived at the club to replace Louis van Gaal in May 2016, but his appointment came three weeks after Bayern had wrapped up a deal for the Portugal international.
A report from Kicker in May suggested Ancelotti is unconvinced the youngster will make the grade at the Bavarian giants, listing United as one of the clubs interested.
The Sun now report United are "closing in" on a one-year loan deal for the powerful midfielder.
Milan however remain in the equation with a move to the San Siro something that greatly appeals to the player.
"AC Milan is an interesting option," Sanches added. "If the opportunity arises and the clubs can agree, I would like to talk to them."