Originally posted on Pro Sports Daily  |  Last updated 7/20/12

Mike Wallace and the Steelers are in "close contact" as they continue to discuss a new contract for the big-play wide receiver, according to CBSSports.com's Jason La Canfora.

Wallace was given a one-year, $2.72 million tender as a restricted free agent, but hasn't signed it and is believed to be leaning toward holding out of training camp if he doesn't get a long-term deal.

"The sides have remained in close contact and continued their dialogue and are expected to maintain a steady pace with the start of training camp looming," La Canfora reported. "There has been some movement and though no deal is imminent and work remains to be done, the situation has certainly improved since early this offseason. Both sides are motivated to complete a long-term contract."

If Wallace does hold out, he'd have to report before the 11th game of the regular season to earn an accrued season toward free agency.

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