According to ESPN's Todd Archer, the parties met Wednesday and discussed the 26-year-old's new contract.
"The meeting did not last long but the Cowboys hope to get a long-term deal finished before needing to use the franchise tag on Prescott," Archer noted. "To a degree, the discussions are complicated by the CBA extension that needs to be voted on by the players."
The franchise-tag and transition-tag window opens Thursday and lasts until March 12.
Newly hired head coach Mike McCarthy touched on Prescott's fluid contract situation and future in Dallas while meeting with reporters at the NFL combine in Indianapolis earlier Wednesday:
Prescott and the Cowboys had lengthy negotiations last offseason but failed to get anything done, though executive vice president Stephen Jones disclosed earlier this week that both he and owner Jerry Jones believed the two sides would come to terms on an extension prior to the 2019 campaign.
Cowboys brass—most notably Jerry Jones—and Prescott have consistently reiterated their mutual interest in a long-term partnership over the last year-plus. "I want to be a Cowboy forever," the 2016 fourth-round pick told reporters last May.
Jones went so far as to tell Clarence E. Hill Jr. of the Dallas Star-Telegram in Nov. 2018 that he would not trade Prescott even if the return was first-round draft picks:
"I don't know how we could ask for more, to have this opportunity for him to progress the way he has. If someone walked in here right now and looked like they were going to get the No. 1 pick in the draft and said we'll give you two picks for Dak. I wouldn't even consider it. No."
More recently, Prescott told ESPN's Sage Steele he's "confident a new contract is coming" and added he's also "confident in the Cowboys that something will get done" during a late-January interview.
Prescott threw for a career-high 4,902 yards and 30 touchdowns last season alongside 11 interceptions on 65.1 percent completion across 16 starts while the Cowboys sputtered to an 8-8 record and missed the playoffs.
The 2016 AP Offensive Rookie of the Year has gone 40-24 as the starter in Dallas with two NFC East titles and subsequent playoff trips. The Cowboys lost in the divisional round in both 2016 and '18.
Moving forward, the Cowboys have to worry not only about locking in Prescott but star wide receiver Amari Cooper. McCarthy told reporters Wednesday he wants to keep Cooper and fellow veteran receiver Randall Cobb to preserve last season's leading total offense.
A full list of Cowboys set to become free agents can be found on the team's official site.