The invention provides a negotiation method and equipment based on a VEM (Virtual Extension Matrix). The method comprises that port extension equipment sends a discovery message to control equipment through a cascading port in an UP state in a discovery mode; the control equipment receives the discovery message sent by the port extension equipment, and sends a response message of the discovery message to the port extension equipment; the port extension equipment receives the response message and determines completion of connection between the port extension equipment and the control equipment according to the response message of the discovery message; and the port extension equipment switches a discovery mode into a synchronization mode. According to the invention, during the negotiation process between the control equipment and the port extension equipment and under a condition and the control equipment and the cascading port of the port extension equipment are in the UP state, the port extension equipment actively sends the discovery message to the control equipment corresponding to the cascading port, the control equipment only needs to respond the discovery message sent by the port extension equipment, so that the CUP resource consumption of the control equipment is reduced further.