Prescott's agent, Todd France, met with Cowboys brass in Indianapolis on Wednesday to discuss an extension for the Dallas quarterback, NFL Network Insider Ian Rapoport reported. ESPN first reported the news.
It was the first time the two sides had talked turkey since September.
Prescott is slated to be an unrestricted free agent when the new league year begins on March 18, but he is a potential franchise tag target when the tag window opens on Thursday. The window closes on March 12, six days before the start of free agency.
Talks between Prescott and the Cowboys have been dormant since the start of the 2019 season, which was Dak's best statistical campaign of his four-year career. Prescott threw for a career-high 4,902 yards and 30 touchdowns at a career-best 8.2 yards per attempt.
The holdup in negotiations is partly due to the current negotiations between the league and the NFL Players Association regarding a new collective bargaining agreement.
Cowboys executive vice president Stephen Jones told reporters Monday, "We've been wanting to see how this labor agreement is going to go. Obviously, it makes a big difference on a contract this big. Obviously, we're optimistic and our goal is to get it done before you have to tag, the last day to tag (March 12)."
On Tuesday night, the NFLPA board of representatives sent the owner-approved CBA proposal to its membership for a vote. The timing for a vote has not been determined, though it could be over a week until a vote is cast.
The sooner the CBA is ratified or dismissed by the players, the sooner Prescott's situation can be resolved.
Whether or not the Cowboys can use both the franchise and transition tag, or just one, has no effect on their desire to keep Prescott in Dallas for the foreseeable future.
Jones said Monday of Dak, "He's our quarterback for the future and we have nothing but the greatest respect for him."
Dallas' new coach, Mike McCarthy, told reporters Prescott is a championship-level QB and that he is comfortable with letting his contract situation play itself out.
"It's exactly where we want to be with Dak," McCarthy said. "What he's done to this point speaks to itself. Really, Dak is in a business situation right now -- I've gone through this as a coach with a number of my players in the past. I think like anything, it's just time to be patient and let the business people work out the business matter. And that's really where we are as an organization. And that's where Dak is in his personal flight to get a contract done."