United is reportedly frontrunner to sign Dortmund star and England international Sancho at the end of the season, while Premier League leader Liverpool and Chelsea are also interested.
As speculation mounts over Sancho's future, Watzke – who admitted it is "not clear what will happen" – insisted Dortmund have enough money to turn down big-money offers for the 19 year-old attacker.
"I think he has the feeling that the club does have a good future," Watzke said. "In my opinion, I don't think he wants to leave."
"It's not a question of money," said Watzke. "For us, it would be the best position if he stays at Borussia Dortmund.
"We have enough money. We want to have titles. I think this team has a lot more potential with Jadon than without Jadon.
"We have a very confidential relationship between us and him and his agents. We will discuss it."
Sancho left Manchester City for Dortmund in 2017 and the Englishman has established himself as one of the most exciting players in Europe.
The teenager has scored 14 goals and supplied as many assists for Dortmund in the Bundesliga this season.
Sancho has netted 17 goals across all competitions in 2019-2020.