West Ham have reportedly offered the Algerian international winger a contract, and they are in pole position to land the 26-year-old.
Feghouli has reportedly also had interest from the likes of Manchester United and Tottenham Hotspur, but the Hammers are now confident of getting a deal done.
Feghouli’s arrival at West Ham would significantly strengthen Slaven Bilic’s attacking options, and he is very highly regarded.
Valencia had wanted to keep Feghouli at the club, but the turned down their contract offer - and is said to be keen on a move to the Premier League.
If Feghouli did move to West Ham, he could partner Manuel Lanzini and Dimitri Payet in the attacking midfield spots.
Feghouli made 31 appearances for Valencia last season, scoring on four occasions.
If Feghouli moves to West Ham he will become their second signing of the summer, following the addition of Havard Nordtveit from Borussia Monchengladbach earlier in the window.