The report goes onto state that Bayern were ready to match Dortmund’s €20 million valuation for the player but have been put off by the 24-year-old’s ‘greedy’ contract demands.
The developments put Manchester Untied back into pole position to sign the Germany international.
Dortmund Sporting Director Michael Zorc recently confirmed Gündoğan would be leaving in the summer.
“Our talks came to the conclusion that he won’t extend his contract and will leave in the summer,” Zorc was quoted as saying by Sky Sports.
Gündoğan has four assists and three goals in 31 appearances for Dortmund this season.