The Portuguese midfielder's current deal expires next summer, meaning he would have been free to negotiate with clubs abroad from January under Bosman rules had United not moved to secure his future.
According to Italian journalist Nicolò Schira, the club have now presented Fernandes with an extension that would tie him to United for a further three years beyond his existing contract.
Manchester United signed Fernandes from Sporting Lisbon in January 2020, and the 31-year-old has become the club's most important player in the years since, contributing heavily to the team's output from midfield across multiple managerial regimes.
Sky Sports reported several weeks ago that Fernandes had turned down an earlier renewal proposal, which included a pay rise worth €500,000 per season, suggesting the two parties remain some distance apart on terms even as talks continue.
It remains to be seen whether Fernandes will accept United's revised offer or ultimately let his contract run down, with the captain having previously been linked with interest from clubs in Saudi Arabia and Turkey during moments of uncertainty over his Old Trafford future.
His importance to Manchester United's system, both as a creative outlet and as a senior leadership figure in the dressing room, makes the outcome of these negotiations one of the club's most significant off-field storylines heading into the new season.
Fernandes has captained United since 2024 and remains central to manager plans regardless of the various changes in the dugout over recent seasons, a level of consistency few other players at the club can claim. United's willingness to extend terms so far beyond his current deal underlines how unwilling the club are to risk losing him for nothing when his contract eventually does run out.
The timing of the fresh proposal is notable, coming just as the January transfer window approaches, from which point Fernandes would technically be free to agree pre-contract terms with an overseas club. United's hierarchy will be hoping the improved offer, reportedly stretching the deal three years further than the previous proposal, proves enough to persuade their captain that his long-term future remains best served in Manchester rather than exploring the open market next year.