Dembele has repeatedly refused Barcelona’s advances of a new contract and initially coach Xavi was optimistic for the forward to remain at Barcelona.
The forward is demanding wages of €40m per year from the cash-strapped Catalan club and despite Barcelona’s efforts to get him to water down those demands, he is sticking to them.
Barcelona have been prepared to make Dembele sit in the stands for the final months of his contract, but they could now take more drastic action due to the lack of movement.
According to Catalan daily Sport, Barcelona are giving real thought to terminating his contract this month.
The forward’s camp meanwhile have intimidated that they will not accept a transfer this window, thus adding to Barcelona’s worries.
Dembele has refused to play ball even after entreaties from Barcelona coach Xavi and the termination of his contract would at least allow the La Liga club to save on his wages.
Xavi is opposed to ending Dembele’s contract as he still feels he could use the Frenchman’s quality this season.
A host of clubs are keen on Dembele, including Tottenham and Newcastle, and Barcelona suspect he already has an agreement to leave the Camp Nou lined up.