The Blues are one of a number of clubs to have been linked with the England international, who is reportedly valued at around £120m following another impressive campaign with Dortmund.
Sancho has a combined 55 goals and assists in the Bundesliga since the start of last season, but Sinclair does not believe that he would be an automatic starter at Stamford Bridge.
"Jadon Sancho is a fantastic player and a great talent but he plays in similar positions to the likes of Callum Hudson-Odoi and Willian, so there will be tough competition for places if he does join in the summer," he told GentingBet.
"Whether he is a Chelsea target, I don't know, as Chelsea have more than enough players in those positions that can play in those wide areas or in the Number 10 role - they have plenty of options.
"So, I don't think that it is a position that Chelsea are panicking over but if a player of Jadon's ability becomes available then you have to look at it.
"There are rumours that he is Chelsea fan as well, which will help. But for me, it's not a position that Chelsea are desperate for."