Fernandes, 21, is certain to leave West Ham following the club's relegation to the Championship. The Hammers are demanding more than double the £38m they paid Southampton for him 12 months ago and are refusing to entertain a discount despite the drop in division.
Manchester United have identified Fernandes as a key target for manager Michael Carrick's midfield rebuild. Ederson is set to arrive from Atalanta, and United want Fernandes to partner him in the engine room.
Tottenham had appeared to move ahead of United in recent days. Roberto De Zerbi's side are prepared to offer Fernandes higher wages and a larger fee to West Ham United, and are also pursuing Newcastle United midfielder Sandro Tonali, looking to pair the two in midfield.
According to journalist Matteo Moretto, United have now stepped up their efforts, with fresh talks held with the player and the club signalling they are ready to raise their contractual proposal.
Talks with West Ham will follow once the player's position is clearer. The Hammers have made plain that the player goes to whoever offers the most — West Ham will not give preferential terms to either suitor.
Arsenal had also been monitoring Fernandes but their interest is not expected to advance. The transfer remains fluid, with United pushing hard to move ahead of Spurs for a player both clubs regard as a priority target.
For West Ham, the ideal outcome is a bidding war that drives the fee as high as possible. With two major clubs competing and the player open to both, the Hammers are in a position of strength despite their Championship status — and they intend to use it.