West Ham United have denied reports Dimitri Payet and his agent have demanded a new contract but confirmed talks are underway over a new deal.

The Hammers' statement comes after reports this week suggested the French playmaker had demanded a new contract worth £125,000 a week.

However, West Ham claim that isn't true but have confirmed talks are underway about a new deal owing to the former Marseille man's fine form.

The statement read: "Following reports in today’s media, West Ham United would like to clarify that at no time have Dimitri Payet or his agent made any demands to the club over a new contract.

"However, the club can confirm that due to Dimitri’s outstanding impact since his arrival at the Boleyn Ground, they have initiated amicable and productive talks about an improvement and extension to his contract.

"Those talks are progressing well and it is hoped they can be concluded shortly.

"Dimitri would like to make clear that he is very proud to play for West Ham United and he appreciates the support he has received from the board, manager and fans since he joined the club in the summer."

The £10.75million buy has inspired West Ham to victories over Arsenal, Liverpool, Manchester City and Chelsea.

In total he has scored six goals, made four assists and helped keep the Hammers in contention for a European finish.

Manager Slaven Bilic has been full of praise for Payet, comparing him to legendary Hammer Paolo Di Canio.

The Croatian has urged the club to keep the French international happy by ensuring that he is aware, financially, just how much he is valued.

The Irons boss said: “We are moving and the club is moving, with the new stadium, the revenue and everything.

“But the most important move is to keep your best players and Dimitri Payet is our best player. I have no problem whatsoever saying that. And of course I would love to have him happy, long term, at the club.”