Dortmund claimed a 1-0 win over Paris Saint-Germain on Tuesday night in the second leg of their semi-final, with Mats Hummels scoring the only goal of the contest.
The Bundesliga club had already held a 1-0 advantage from the first leg and progressed to the final with a 2-0 aggregate victory.
Sancho starred for Dortmund in the first-leg win over PSG and will now be looking ahead to the Champions League final next month.
During the January transfer window, United loaned Sancho to Dortmund - the club they originally signed him from for £73million in 2021 - for the second half of the 2023/24 season.
The first half of the campaign saw Sancho make just three appearances for United.
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