The 28-year-old has emerged as a big target for West Ham following an impressive first season in England for Fulham.
The Hammers have sold Declan Rice for a British transfer record and are looking to bring in two midfielders this summer.
Palhinha has been one of the top targets but their first offer for the player has been knocked back by Fulham.
It has been claimed that West Ham put in an opening bid of £40m for the Portuguese midfielder recently.
However, Fulham wasted little time in rejecting the bid from the Hammers as they push to keep the player at the club.
Palhinha played a big role in helping Fulham finish in the top half of the league table and Marcos Silva does not want to lose him.
But West Ham are keen to take him to the London Stadium and are expected to prepare a new offer.
Fulham will likely demand a massive fee before they agree to let the player go this summer.
