The Portuguese superstar has been in talks for months over the new terms, and is near to putting pen to paper.
Fernandes has been persuaded to stay after the signing of pal Cristiano Ronaldo and huge investment in the transfer market.
His new terms - which will last until 2026 - could be announced within the next few weeks after successful talks.
The attacking midfielder has become a key part of Ole Gunnar Solskjaer's team, and a vocal leader in the dressing room.
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