The talented 19-year-old swapped Ashton Gate for Loftus Road during the summer after turning down the offer of a contract extension with The Robins.
However, Danny Wilson's side kept hold of Rosenior's registration in order to receive compensation for his move to West London.
The West Country outfit then lodged an appeal against a Football League appeal which denied them compensation due to their offer of a new contract arriving after the deadline.
City are now looking to settle with Fulham ahead of the appeal hearing and the club have confirmed they have entered into talks with the Premiership outfit.
"We are in discussions with Fulham to see if we can come to some sort of settlement without the need to go through an appeal," chief executive Colin Sexstone told City's website.
