Two sources briefed on the situation say the team is not expected to work out a contract extension with Pagano prior to the season, the final year of the four-year contract he signed when he was hired in 2012.
Pagano commented on his contract situation Friday in a statement obtained by The Indianapolis Star and WRTV.
"Cancer taught me to be thankful for today," Pagano said. "All I'm concentrating on is today. Then tomorrow. My focus right now is on the draft, bringing in players that can help us continue to grow, get better, and continue to 'Build the Monster.' I look forward to coaching the Colts this season and for many years to come."
The Colts have made the playoffs in each of Pagano's three seasons, though he missed most of 2012 while battling cancer, as interim coach Bruce Arians won Coach of the Year honors. Pagano has impressed the team's brass, but in part because of his illness, there have been only two full seasons on which to judge his prowess as a coach. The team will utilize 2015 to continue to evaluate him, while Pagano hopes to use it to achieve as much team success as possible, which would increase his value.
"It's always good to be able to add some veteran guys who have some years under their belt into the locker room," Pagano said this week during the NFL Annual Meeting in Arizona.
"It's our Achilles heel right now," Pagano said this week, per The Indianapolis Star. "We either get it fixed or it will be somebody else getting it fixed."