Fighting against relegation, West Ham are reluctant to lose their midfield talisman halfway through the season.
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However, BBC Sport says Flamengo are willing to compromise by signing Paqueta and allowing him to remain with West Ham on-loan to the end of the season.
Flamengo are willing to pay big - £35m - to strike a deal with West Ham, which do favour the loan proposal.
For his part, 28 year-old Paqueta wants to see the deal happen and may need some convincing to play out the remaining five months of the Premier League season.