Debate: Pay cut for Peyton?
But there is a caveat. Irsay indicated it would take a restructured contract that reflects the uncertainty of the quarterback's recovery from three neck surgeries for Manning to retire a Colt.
"We can make it work if he wants to be here," Irsay said. "We'd be excited to have him back and finish his career with us.
"I want him to be able to make the choice. We would love to have him back here if he can get healthy and we can look at doing a contract that reflects the uncertainty of the ... healing process with the regeneration of the nerve."
Manning is due a $28 million option bonus March 8. According to The Star, that bonus activates the final four seasons of the five-year, $90 million contract Manning signed last offseason.
Irsay, keenly aware of his potential position as the owner who let Manning leave, is making it known he's not pushing the quarterback out the door. Manning is welcomed back -- but at the right price.
"There's no question it can be worked out if he wants to be here," Irsay added. "It can work if he wants to come back and can get back to being the old Peyton."
The Colts went 2-14 last season without Manning, who started every game in his first 13 NFL seasons. The league-worst record gave Indianapolis the No. 1 overall draft pick, which the team is expected to use on a quarterback to eventually replace Manning, who guided the Colts to a Super Bowl title in the 2006 season.
The Associated Press contributed to this report.