The 45-year-old has one year left on his contract, which has a £6million release clause, and Fulham are confident talks will reach a positive conclusion.
Silva wants further investment in players and for the club to keep star midfielder Joao Palhinha.
West Ham are monitoring Silva’s talks with Fulham, amid uncertainty over David Moyes’s future. And, having failed to land Feyenoord manager Arne Slot, there is a possibility Spurs could poach a move for the Portuguese.
Director of football Tony Khan told The Athletic this week that his club will build on their successful season back in the Premier League with Silva still at the helm: “It has all come together for a really special moment and I am very positive about Marco.
“He is very happy at Fulham, and all of us are very happy with him. We want that to continue, hopefully for a very long time.”