Jadon Sancho did not leave Borussia Dortmund for Manchester United because the Red Devils "misjudged" the situation, according to Hans-Joachim Watzke.
England winger Sancho was said to be United's number one target during the transfer window but Dortmund refused to budge from a reported €120million asking price.
The failed lengthy pursuit led to renewed criticism of United executive vice-chairman Ed Woodward and his dealings in the market.
After the deadline, Dortmund sporting director Michael Zorc admitted Sancho would have been allowed to depart Signal Iduna Park had the club's demands been met.
CEO Watzke further expanded on Dortmund's position, though did not specifically name United when discussing what occurred.
"[They] misjudged the situation. We would be more willing to compromise. We had a clear line and will continue to do so next summer," Watzke told ZDF Sports.
"In this industry, you can never say that a player is completely unsellable."
United are already rumoured to be planning a fresh move for Sancho in the January window when big-money moves are generally harder to strike.
Watzke was asked if he felt Sancho would have left amid rumours he was keen for a switch to Old Trafford.
"I heard and read everywhere in the spring that Sancho was gone. But he's here," he added.
"We had an agreement with him and it didn't look like that."
