The Bundesliga outfit want to give their midfield star a new five-year dear and are willing to hand him £180,000-a week-wages - almost double his current salary, which ends in 2025.
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But in a huge boost to those clubs chasing his signature, The Sun report he will reject the offer as he looks to continue his ascent to the top of the game.
A transfer to Dortmund in 2020 has propelled him from Championship teen talent to World Cup wonderkid with his showing for England in Qatar wowing the globe.
Still just 19 years old, Bellingham has even captained his club side in the absence of senior stars like Mats Hummels and Marco Reus as he showcases his elite mentality.
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And by turning down the German club's new terms, he's set to fully ignite a bidding war between interested parties.
A fee for Bellingham is set to be north of the £100million Man City paid for Jack Grealish.
A sticking point for some clubs is likely to be the fact it's reported Dortmund want 75 per cent of the fee up front, especially with his former club Birmingham City being owed a cut of the fee.
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One club who may have an edge in the race for his signature are Liverpool.
The Merseysiders appear to have their hearts set on the midfielder and their legendary star Steven Gerrard insists he'll do all he can to help seal a deal.
He told BT Sport: "I am sure Jude Bellingham is bright enough to go, 'there is a stand going up here', this will be a 60,000 stadium, they have one of the best five managers in the world, they have won the Premier League of late, and they have been in Champions League finals of late.
"They pay very well here - that's a fact. They have got some fabulous players, they develop players. It ticks an awful lot of boxes but Liverpool obviously, at the moment, are in the middle of the league."
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And when Manchester United legend Rio Ferdinand joked he had sold the club well, Gerrard replied: "Because I want him.
"All he needs to do is send his diary to me. When he's got a free day I'll fly to Dortmund personally, I'll take him out for a nice dinner and we will talk about it.
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