From the photo, it seems that the wooden "skeleton" of the sheath, on which the leather was stretched, has already crumbled and fallen out. But maybe the scabbard could be restored by soaking it in alcohol (then when it dries, the leather won't shrink anymore as it would with water) and then inserting two slices cut from plywood in the shape of a blade. (This is just an idea (!)..... But the sheath would need to be stapled between two boards when it dries to eliminate various bulges forming on the leather etc)
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