HINT $\rm\displaystyle\quad \bigg(a\ \bigg(x+\frac{1}x\bigg)^2 + b\ \bigg(x+\frac{1}x\bigg)+c\bigg)\ x^2\: \ =\ \ a\ (x^4 + 1) + b\ (x^3+x) + (c+2a)\ x^2 $
The above allows you to determine the values of $\rm\:a,\:b,\:c\:$ by inspection. The same works for arbitrary even degree symmetric polynomials: $\ $ simply subtract $\rm\ a\ (x^2 +1)^k$ and recurse on what remains.
This is essentially a special case of Gauss's algorithm for rewriting symmetric polynomials in terms of elementary symmetric polynomials. It's one of the earliest known occurrences of Grobner basis rewriting, e.g. see p. 314 of Cox, Little, O'Shea:$\ $ Ideals, Varieties and Algorithms. In chapter 7 they present a generalization to compute the ring of invariants of a finite matrix group $\rm\: G \subset GL(n,k)\:$.