It is in the best interest of both parties to move on
Sancho started his Chelsea career off in good form with three cysts in his first three matches and important goals against Southampton and Tottenham in the league. Unfortunately, his last statistical contribution came all the way back in January and he has struggled mightily since then.
We see this often with young players who get a lot of hype and attention early in their careers but things seem to fall off in their mid-20s. To be fair to Sancho, the hype he generated at Borussia Dortmund was well deserved and his run from 2018 to 2021 with the German club was incredible.
He has struggled to adapt to the Premier League since his move to Manchester United and playing for massive clubs like united or Chelsea maybe above his level. There is also the chance that he may go on to succeed and get back to his previous form, but we will never know that if he is buried on the bench at Chelsea.
That's why even keeping him around as a squad player may not be in the best interest of him and Chelsea as every player deserves to play as many minutes as his body will allow. If Chelsea can get similar production from a younger and cheaper player with more potential they should move in that direction. Sancho has been a good servant of the club in his brief time here, but all signs point to a separation and a happy ending for both sides.