After weeks of swirling rumors regarding a potential pay cut, the two sides have begun discussions to rework Manning's contract, NFL Media Insider Ian Rapoport reports, via sources informed of the situation.
It's unclear if the talks involve a reduction or a restructure, Rapoport adds. Manning is currently due $19 million in each of the next two seasons.
Because Manning's salary counts $21.5 million against the cap, the team has been seeking a lower number with free agency decisions on the horizon.
The two sides hope to have a resolution by early next week, according to Klis.
Under Manning's current contract, his salary would become fully guaranteed on March 9, the day before the start of the new league year.
Once Manning's new deal is finalized, he will have to pass a team physical by Thursday, March 5 before the team issues a formal announcement. Manning has stated that he anticipates no problems with the physical despite his late-season thigh injury.
Whereas a week ago, anything seemed possible in the relationship between Manning and the Broncos, this news is the first indication that the quarterback is willing to compromise.
At this point, it would be a shock if he's not under center for Denver in Week 1.