Wanyama was strongly linked with a move to Tottenham in the transfer window and he reportedly asked to leave the Saints in order to push a move through.
Southampton executive director Les Reed has now confirmed they are holding talks with Wanyama about a new deal, which would keep the highly-rated midfielder at the club until 2020.
Reed told Sky Sports News: “We’ve already tried to start negotiations on that. We’ve offered him the opportunity for a long-term extension.
“We’d like to tie him down for another five years. Whether that’s possible or not, I don’t know but the opportunity is there to do that.
“He was a little bit unsettled and I think that has to happen probably at most clubs with different players. The speculation does raise a few eyebrows.
“Maybe it got a little bit too hyped up and maybe Victor thought there was a bit more truth in the rumours than there was.
“Now it’s over, he’s gone home to Kenya and I think he’ll enjoy some time with his family and come back and be settled and raring to go in our team.”