Sancho and Ten Hag had a positive meeting at Carrington Training Centre and the two have decided to draw a line under last season's drawn-out argument, the club source said.
Sancho made just three appearances for United last season, spending the second half of the campaign on loan to Borussia Dortmund after his relationship with Ten Hag soured in September.
Ten Hag had left the winger out of his squad for United's 3-1 loss to Arsenal, saying Sancho's performances in training had not warranted a place in his team. Sancho immediately lashed out on social media, accusing Ten Hag of making him a "scapegoat."
He was banished from the first team and trained with United's youth squad before returning to his former club Dortmund in January, where he shone during their Champions League semi-final victory against Paris Saint-Germain, earning praise from Ten Hag. Dortmund were beaten by Real Madrid in the final.
"(Sancho) is a very good player... he showed why Manchester United bought him and he showed he represents a high value for Manchester United, which is good," Ten Hag told reporters following Dortmund's 1-0 win over PSG in the first leg.
"I'm happy for Jadon, for the performance, and we'll see what is going to happen in the future."
Sancho will not travel with the team to Norway for their pre-season opener against Rosenborg since he began training later than the other players but the club source said he would be available for selection after that.
