Vinicius Jr joined Real Madrid in 2018
Real Madrid have made Vinicius Jr an improved contract offer as they look to keep the Brazil winger at the Bernabeu.
The 26-year-old has entered the final 12 months of his contract and has attracted interested from Arsenal in recent weeks.
Talks over a new deal at Real were at an impasse but the Spanish side have now made a new offer to Vinicius, who is understood to be appreciative of the fresh terms.
Real now await Vinicius' decision, but senior managers – including returning head coach Jose Mourinho – are now hopeful he will renew.
It is understood Real are expecting a response within hours rather than days.
If Vinicius rejects the contract, Arsenal are willing to accelerate their interest in the Brazilian.
Vinicius signed a contract extension at Real three years ago which runs until 2027, and the club and his representatives have been in talks over a fresh deal for the past 18 months.
He returned to the club on Monday for his first pre-season training session and medical assessment following his World Cup campaign with Brazil.
Vinicius, who has made 375 appearances for Real in all competitions, scoring 128 goals, is believed to want recognition as Los Blancos' top star financially.
However, Real are traditionally strict about maintaining their salary structure under president Florentino Perez.
Vinicius has publicly described Real as "the club of my dreams" and said he hopes to remain there "for many years".
Arsenal have identified the Brazilian as their priority left-wing target should his position change.
Real to resume talks with Arsenal target Vinicius Jr
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