Contracted to United until 2025, management are keen to upgrade the midfielder's deal after a superb first 18 months with the club.
United are offering a one-year extension to 2026, which will include a huge pay-rise.
Italian transfer expert Fabrizio Romano reports Fernandes and United are continuing talks, which have been going on since the summer.
A stumbling block emerged last week, with his agent insisting a buyout clause be added to the new arrangement. However, Romano says talks are being maintained.
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