Sporting Lisbon are looking to make around £60million from the sale of the 24-year-old, while Manchester United are rumoured to be willing to pay closer to £53m for the playmaker.
Manchester United have genuine interest and have been reported as being in talks with both player and club.
The Portuguese has been earmarked as one of the prime targets to bolster the club's midfield this summer following his stellar campaign in Portugal, where he bagged 20 goals and 13 assists in the league.
The player has a four years remaining with the Portuguese outfit, and hence, they are demanding staggering amount from Manchester United for the services of Fernandes.
Whilst the Rome club initially suggested they would hold out for a bid of at least £70m, United are now only prepared to spend £64m for the box-to-box player.
City have already had a bid of €45million (£40m) for Fernandes rejected, with Sporting holding out for €70million (£63m).
The report says United are yet to make a formal offer but a proposal is being prepared and Fernandes fully expects to become a Manchester United player before the start of the new Premier League season.
No move appears to be imminent, though, at a time when United are still contemplating whether to sell Paul Pogba to either Real Madrid or Juventus.
United are continuing to prove to be hard with them intent on securing a huge sum of money for the former Everton forward, that they only signed two Summers ago.
UNITED received a major boost in their £60million pursuit of Bruno Fernandes.