With Declan Rice having made a big money move to Arsenal, West Ham have a need to strengthen their midfield and funds to spend.
Boss David Moyes is keen on Fulham midfielder Palhinha and the Hammers have sent offers to Craven Cottage in an effort to sign him.
Fulham have rejected both proposals sent by West Ham for Palhinha and the Hammers are now of the belief that their chances of signing the Portuguese are very slim.
They do not expect to be able to capture the former Sporting Lisbon man this summer.
For a move to take place, Fulham would have to make a remarkable turnaround on the midfielder and be prepared to accept an offer from West Ham.
Palhinha, 28, was signed by Fulham from Sporting Lisbon just last summer, for a fee of £20m.
He impressed in his first season in the Premier League and now looks set to continue at Fulham into the new campaign.
