Contract talks on a long-term extension between the Dallas Cowboys and quarterback Dak Prescott seem to have stalled out, according to a report from Ian Rapoport of the NFL Network.

“The Cowboys and quarterback Dak Prescott have a mutual understanding,” Rapoport posted on X (formerly known as Twitter. “Of his contract situation, sources say, with no offers from Dallas despite him being in a contract year. Owner Jerry Jones said, ‘We are where we are, locked and loaded for this year.”

Rapoport added that there is “no indication a deal is coming.”

The #Cowboys and QB Dak Prescott have a mutual understanding of his contract situation, sources say, with no offers from Dallas despite him being in a contract year. Owner Jerry Jones said, “We are where we are, locked and loaded for this year.”

No indication a deal is coming. pic.twitter.com/JtW5lqHzSG

— Ian Rapoport (@RapSheet) March 26, 2024

Prescott’s contract hangs over the Cowboys’ offseason like an anvil and is a significant reason why Dallas has struggled to compete for top talent in free agency in recent weeks.

Without restructuring Prescott’s contract, or signing the 30-year-old to an extension to lower his cap number, he’s set to count $55.45 million against the cap for the 2024 season. As things currently stand, Prescott makes up a whopping 21.29 percent of the Cowboys’ cap obligations ahead of the 2024 campaign.

Dak Prescott Now Facing Uncertain Future

Rapoport’s reporting on where things currently stand between the Cowboys and their franchise player is a stark reversal from how Prescott viewed the negotiations as recently as March 4.

“I’m definitely confident,” Prescott told reporters that day when asked about getting an extension done. “Obviously it helps the team. It’s important for the numbers. … Both sides understand that. Everything’s great. It’ll happen.”

The Cowboys could ultimately choose to allow Prescott to play out the final year of his contract and become an unrestricted free agent next March.

However, from Prescott’s perspective, that could carry too much risk, and without a new deal there is always the possibility that he will hold out from offseason workouts and perhaps into training camp this summer.

Meanwhile, ahead of free agency, Cowboys owner Jerry Jones struck a pessimistic tone about the state of contract talks with Prescott during a conversation with the team’s official website.

“We don’t need to, but we can if everybody wants to solve it,” Jones said . “You can get in and get on the same page and see if you can come to an agreement. If you can’t, what we have in place works.

“And so obviously, if you do it one way, you’ll be working through some of the other areas on the team in a different way, but you can’t really plan on that until you see when you’re there.”

Jerry Jones Still Confident in Cowboys’ 2024 season

During the same week Jones walked back his comments about being “all in” for the 2024 offseason, the Cowboys’ owner suggests that he’s as confident as ever in his team’s prospects this upcoming season.

“I feel good about it,” Jones told reporters during the NFL Annual Meeting in Orlando, Florida. “I feel as good as any time I’ve gone into an offseason as I can remember.”

If Jones and the Cowboys can’t reach a deal with Prescott, Dallas would have only $4.9 million in cap space as free agency enters its second wave and ahead of signing the franchise’s incoming draft class, without making roster cuts or restructuring the deals of other veteran players.