The 24-year-old has been outstanding for The Hammers this season since their return to the Premier League.
West Ham are set to open talks with the defender and his representatives over a new deal in recognition of the huge strides he has taken in the past 12 months.
Reid has two-and-a-half-years left on his current deal, but the terms are from when he joined the club from Midtjylland in 2010. It is believed West Ham are ready to offer him a significant pay hike.
However, Sky Sports understands that the performances of the New Zealand stopper have not gone unnoticed elsewhere.
Clubs from Italy, Spain and Germany have all been alerted to his progress but the interest is strongest in the Premier League, where some of West Ham's rivals are weighing up bids, even as early as January, to try and lure him away from Upton Park.
West Ham will fight hard to keep Reid, and remain hopeful he will sign a new deal.
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