The 33-year-old is in the final months of his current contract and has been considering his future options.
Having spent his entire career at Los Blancos, Fernandez has become a staple in coach Carlo Ancelotti's starting line-up, showing his versatility by playing across the backline.
Despite admitting his disappointment at not playing regularly earlier in the season, the defender has delivered solid performances, earning himself a spot in the Spanish national team.
Real have always maintained that they would offer him a contract renewal for another year. Though there were previous reports that the defender was considering his options due to a lack of game time, it is now believed that he is ready to sign a new deal as long as an offer is made.
While Fernandez has received a three-year contract offer from abroad, he has reportedly informed club president Florentino Perez of his intention to stay for one more year.
Fernandez, who joined the Real Madrid youth academy at the age of 11 and made his first-team debut in 2011, is one of the few one-club men in modern football.
It remains to be seen whether Fernandez will continue his career at the Santiago Bernabeu beyond this season but all indications are that he will be staying put at Los Blancos for a while longer.
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