5:18pm: David Waldstein of The New York Times reports that the two sides are expected to announce later today that they could not reach a deal. The Mets will have to release Takahashi per the terms of their contract.
11:56am: Hisanori Takahashi has until midnight to negotiate a deal with the Mets, but it doesn't look like the sides will reach a deal unless the left-hander lowers his demands. Takahashi is asking for a three-year deal worth $4-5MM per season, according to Jon Heyman of SI.com (on Twitter). Adam Rubin of ESPNNewYork.com confirms Heyman's report (on Twitter).
The Mets offered Takahashi a one-year deal before current GM Sandy Alderson took over, according to the New York Times. If the Mets don't agree to a deal with Takahashi tonight, he would not be able to re-sign in New York and pitch before May 15th. That essentially means he's signing elsewhere if he doesn't reach an agreement with the team tonight.