In July, manager Ole Gunnar Solskjaer assured Lingard he would be in his plans this season, but he has only started one game – the League Cup third-round defeat by West Ham in September.
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Sky Sports News has been told both parties “remain willing to work through it” amid the impasse in discussions.
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The England forward’s existing deal at Old Trafford is due to expire at the end of the season and he can sign a pre-contract agreement with a prospective club in January.
Lingard, 28, has made eight club appearances this season, scoring twice in five Premier League games, with a move either on loan or a permanent exit in January not ruled out.
England manager Gareth Southgate left Lingard out of his squad for the recent World Cup qualifiers against Albania and San Marino as a result of his lack of game time.
During the international break in October, Lingard said he needs “regular football” if he is to achieve his ambition of playing for England at the 2022 World Cup.
Please use Chrome browser for a more accessible video player Watford boss Claudio Ranieri insists Manchester United are still one of the biggest team’s in Europe, as he prepares for Saturday’s clash with Ole Gunnar Solskjaer’s side.
Lingard went into this season on the back of a successful six-month loan spell at West Ham, where he scored nine goals and made five assists in 16 appearances under former United boss David Moyes. However, the signing of Cristiano Ronaldo late in the summer transfer window has seen United academy graduate Lingard’s playing opportunities limited.
United visit Watford in the Premier League on Saturday before they play Villarreal in the Champions League on Tuesday ahead of a third successive away game at Chelsea on November 28, live on Sky Sports.