The fourth-year quarterback told NFL Media's Albert Breer on Wednesday that he's optimistic a contract extension is a "when" rather than an "if" proposition.
"I'm confident. And both sides are working on it," Dalton said. "We haven't given a deadline, we haven't talked about a deadline. We don't expect it to get to that point, but if it does, it does."
Dalton has one year remaining on his rookie deal. Bengals owner Mike Brown told reporters last week that the team would be open to using its franchise tag if a deal cannot be worked out. Brown also offered a solid endorsement, exclaiming that Dalton will be the "quarterback here for the immediate future."
Dalton's situation will be a good test case for how much Colin Kaepernick's unusual extension has shaken up the top half of the quarterback market. Brown is on record saying the Bengals would like to sign Dalton to a similar, pay-as-you-go deal.