NFL Network's Mike Garafolo reported the Seahawks and Kaepernick were "apart on money" when they met last week.
Since becoming a free agent in March after opting out of his deal with the San Francisco 49ers, Kaepernick's only visit with a team was in Seattle on May 24.
Seahawks head coach Pete Carroll met with reporters on Friday and was asked why the team chose not to sign Kaepernick.
"He's a starter in this league," he said, per Fox Sports' Andre Vergara. "We have a starter, but he is a starter in this league and I can't imagine somebody won't give him a chance to play."
It's unclear what Kaepernick is seeking on his next contract. The 29-year-old was due $14.5 million in base salary next season with the 49ers before opting out.
In 58 games as a starting quarterback, Kaepernick has thrown 72 touchdowns and 30 interceptions with 12,271 passing yards.