Manchester United are reportedly prepared to let Fred leave the club on a free transfer next June.
The 29-year-old made the move to Old Trafford from Shakhtar Donetsk in July 2018, with the Red Devils paying in the region of £52m to bring him to the Premier League.
Fred has made 173 appearances for the 20-time English champions, contributing nine goals and 13 assists in the process, and he has again been a regular this term, featuring on 16 occasions for Erik ten Hag's side.
The Brazil international has only started four times in the Premier League in 2022-23, though, with the likes of Casemiro, Christian Eriksen, Bruno Fernandes and arguably also Scott McTominay ahead of him in the pecking order when it comes to the midfield spots.
Fred's existing deal with Man United is due to expire next June, but Man United have the option of activating an additional 12 months to take him to the end of the 2023-24 campaign.
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According to The Guardian, Fred's 'application and team ethic' has impressed Ten Hag, but the Dutchman wants to overhaul his midfield at the end of the campaign.
As a result, the report claims that the 20-time English champions are prepared to release the Brazilian from his contract, making him available on a free transfer.
As it stands, Fred, who will represent this country at the 2022 World Cup, would be free to hold talks with foreign clubs at the start of 2023.
The midfielder is yet to win a trophy during his time at Old Trafford, but he was a part of the side that reached the Europa League final in 2020-21.
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Man United also have decisions to make when it comes to Marcus Rashford, Diogo Dalot, Luke Shaw, Cristiano Ronaldo, David de Gea and Alejandro Garnacho.
Rashford, Dalot, Shaw and Garnacho are all expected to be offered new long-term deals, but Ronaldo is expected to depart on a free transfer.
De Gea's future is also far from certain, while Axel Tuanzebe, Phil Jones and Tom Heaton are likely to depart on free transfers next summer.
Man United are expected to be in the market for a new centre-forward in 2023, while a new right-back is also believed to be high on the club's list of priorities.
The 20-time English champions are currently preparing for their final match ahead of the break for the World Cup, which comes against Fulham at Craven Cottage on Sunday afternoon.
