The extension reportedly will contain a 15-team limited no-trade clause and carries an annual average value of $7.25 million against the salary cap. Letang still has one-year remaining on a four-year, $14 million contract, which carries an annual average value of $3.5 million.
Manager Ray Shero and Letang's agent Kent Hughes still have components of the contract to workout. The deal has yet to be formally agreed to, according to Pierre LeBrun of ESPN. However, it's believed the issues are minor in nature and that the largest hurdles of the negotiation have been handled.
Letang reportedly rejected an eight-year, $56 million extension earlier this week. Entering this offseason, many believed Letang was looking to sign an extension that carried a $7 million annual salary over a term of five-to-eight seasons with a full no-movement clause.