Real Madrid have made an improved contract offer to Vinícius Júnior since the World Cup, sources have told ESPN, resuming talks which had been stalled for almost a year.
There has been growing speculation over the Brazil international's future in recent weeks, with his current Madrid deal due to expire in June 2027 and interest from Premier League champions Arsenal.
Madrid have now offered Vinícius a contract worth around €22 million ($25m) a year, sources said, which is an increase on what the club had been willing to offer in negotiations over the last two seasons. Sources didn't reveal the duration of the proposed extension.
However, the gap between Madrid's latest offer and Vinícius Júnior's demands -- around €30 million -- remains significant. It is also unclear how long the contract offer was for.
Vinicius currently earns around €17.5 million annually as he enters the final year of his deal.
If he does not renew, the winger could depart the Bernabéu on a free transfer at the end of this coming season, and would be able to sign a pre-contract with another club from January.
Sources told ESPN that the player and his agents believe that, at 26 years old, this will be the defining contract of Vinicius's career.
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They believe that Madrid should appropriately recognise what the star has done for the club since joining in 2018, including scoring in two Champions League finals.
ESPN reported last week that Madrid would be open to the possibility of a departure for Vinicius this summer, if there is no agreement reached on a contract extension.
Vinicius returned to training on Monday after his post-World Cup holiday, undergoing medical tests and training with teammates and new coach José Mourinho.