Fulham have opened discussions with Andreas Pereira and his representatives about extending his contract at Craven Cottage, according to reports from Brazil.

Marco Silva considers the Brazilian international a key member of his first-team squad and wants to keep the 29 year-old midfielder despite continued interest from Palmeiras. Palmeiras, who finished second in Serie A last season, have made Pereira their primary transfer target and have already had a January bid for his services rejected by Fulham.

Their second bid – believed to be worth £20.5m – has also been rebuffed by the Cottagers, who have now taken the first steps in seeking to extend Pereira’s contract. The former Manchester United midfielder is open to extending his current Fulham contract, which expires next summer. Pereira captained Fulham for the first time as Silva’s side beat Watford 4-1 on Thursday to reach the FA Cup fourth round.