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The Red Devils were keen on landing the Argentina international earlier this week, but could not find a suitable agreement with Villa.
Romano has now revealed that United were ready to include Sancho in a player-plus-cash deal to purchase Martinez before the deadline.
However, the potential swap did not materialise as Sancho was reluctant to consider a permanent move to the West Midlands outfit.
Sancho eventually joined the Villans on a season-long loan, but they refused to consider a similar proposal from United for Martinez.
With limited funds, United ultimately signed Senne Lammens from Antwerp. The Belgian was purchased for an initial £18.2 million.
Lammens will wear the no.31 shirt for the current campaign. He could make his debut when United return after the international break.
The Red Devils face a stern challenge in the Premier League following the break as they are due to face Manchester City and Chelsea.
