Touch ID is unlikely to make a comeback to any flagship iPhone model according to Bloomberg.
Mark Gurman from Bloomberg claims in his latest newsletter that Apple has tested in-screen Touch ID and considered adding Touch ID to the power button for the iPhone, but it is unlikely to see either solution be implemented anytime soon in the foreseeable future.
While Gurman says there is a possibility that Apple might shift Touch ID to the power button for entry-level iPhone models such as the iPhone SE, he has not heard any plans in the pipeline.
Bloomberg reported in 2021 that Apple was testing in-screen Touch ID to be used alongside Face ID for unlocking the iPhone. The iPhone maker has also been granted several patents on in-screen Touch ID. Analyst Ming-Chi Kuo shares a similar sentiment; the success of Face ID with a Mask makes the idea of an in-screen Touch ID seem superfluous.
Source: Bloomberg via 9to5Mac