The Portugal international is out of contract at the end of the 2026/27 season, but the club do retain an option to invoke a 12-month extension on his present deal, until June 2028.
United are keen to avoid that situation, as they want to renew the 32-year-old's existing agreement by mutual agreement, and club officials have been locked in talks with his representatives since September.
However, as per the latest from BBC Sport and other outlets, Fernandes has turned down United's second proposal over a new deal at Old Trafford, after previously rejecting terms over the summer.
If United cannot agree a fresh deal with their skipper, the club will almost certainly activate that 12-month clause before the end of 2026, as part a wider plan.
That move would guard the club against Fernandes possibly opening talks with a non-Premier League team over a possible free transfer in 2027 and gives United more time to persuade their No.8 over staying in Manchester.
English Premier League
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