According to Jane Slater of NFL Network, there have been "good talks" between Cowboys COO Stephen Jones and Prescott's agent, Todd France, as of late, with the conversations considered "better than they've been."
As NFL Network's Ian Rapoport noted Tuesday on The Pat McAfee Show, there is "no chance" Prescott will hit free agency:
"He'll get franchise-tagged again, or he'll do a deal," Rapoport said.
Prescott earned $31.4 million after the Cowboys used the franchise tag on him in 2020, but the number will jump to $37.7 million in 2021 if the two sides can't agree on a long-term deal.
Slater reported the Cowboys tried to give Prescott $35 million per year in 2020 negotiations with a $50 million signing bonus and $110 million in guaranteed money and noted the team would likely not give him a deal for less than five years. A bigger guarantee or signing bonus could help complete an agreement.
If the two sides remain far apart, the quarterback will likely play next season on the tag before hitting the open market in 2022.
Prescott has proved he is worth a lofty contract, earning two Pro Bowl selections while putting up huge numbers in 2019, with 4,902 passing yards and 30 touchdowns.
The 27-year-old was off to a torrid start in 2020 until an ankle injury ended his season in Week 5. He was averaging 371.2 passing yards per game, which would be an NFL record over a full season.
The Cowboys clearly want Prescott in Dallas, but his long-term future with the team remains in doubt.