West Ham United are willing to sell Lucas Paquetá this month only if he returns on loan until season’s end.
Flamengo had a €35m bid rejected and are considering raising it to around €40m.
However, Flamengo are resisting a loan-back agreement and believe they can buy Paquetá cheaper in summer.
West Ham fear losing the midfielder now would worsen their relegation battle.
Paquetá wants to return to Brazil after a difficult spell in England.
He became disillusioned following spot-fixing allegations, which he was cleared of last year.
The investigation cost him a move to Manchester City in 2023 and affected him emotionally.
Paquetá has struggled for form since the case emerged.
He asked to be left out of the FA Cup win over Queens Park Rangers.
A minor injury now leaves him doubtful for Saturday’s match against Tottenham Hotspur.
Selling Paquetá would fund defensive reinforcements after months without a clean sheet.
Manager Nuno Espírito Santo said the situation must be resolved quickly.
He stressed Paquetá remains one of the club’s best players.
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