The Portugal international is contracted at Old Trafford until June 2027, although United can add a further 12 months. That option would prevent him from leaving on a free transfer next summer, while also giving the club more time to assess his longer-term future.
According to the Daily Mail, United are prepared to consider fresh terms but will not meet excessive demands. The report also suggests a sale remains a possibility, particularly given that the club were open to allowing Fernandes to join Saudi Arabian side Al-Hilal last summer.
Fernandes has endured a difficult period on the pitch and attracted criticism following comments about Manchester United's tactical approach. After the Champions League defeat to Como, he questioned the responsibility of head coach Michael Carrick, suggesting it was the manager rather than the players who needed to address the team's problems.
The midfielder was subsequently left out of the starting line-up for the defeat at Bournemouth. He was sent to warm up during the second half but was not introduced, as United suffered a 3-0 loss.
Fernandes returned to the team for Saturday's match against Chelsea, but could not prevent another defeat. His omission at Bournemouth and the public disagreement with Carrick have added to the scrutiny surrounding his position at the club.
However, the contract situation is not necessarily a sign that United have decided to sell their captain. Earlier reports indicated that discussions over an extension were continuing, with the club retaining control through the additional-year clause.
Fernandes also remains an important figure at Old Trafford, having previously rejected the opportunity to move to Al-Hilal. His future may therefore depend on whether both parties can agree terms that reflect his importance to the team while fitting the club's financial plans.
For now, United have the option of extending his contract, but the latest report suggests they are not prepared to offer an expensive long-term commitment without careful consideration.