4:04pm: Paul Hoynes of the Cleveland Plain Dealer reports that the Indians' most recent offer to Masterson is believed to have been in the three- or four-year range. While that's significant lower than Bailey's six-year deal, also keep in mind that with Masterson's 2014 salary already agreed upon, each of those proposed years is a free agent year, while Bailey's deal sold off five free agent seasons.
3:41pm: Justin Masterson and the Indians agreed to a one-year, $9.7625MM contract last week to avoid an arbitration hearing at the eleventh hour. Extension talks have continued since that time, and while nothing is imminent, per MLB.com's Jordan Bastian, Masterson told reporters that he doesn't think this will be his final year in Cleveland (All Twitter links): "I figure that somehow, some way, I'll end up still being here for a few more years," said Masterson. Bastian adds that the two sides spoke earlier this week and plan to do so again over the weekend and in the early portion of next week. MLB Daily Dish's Chris Cotillo writes that the two sides recently exchanged parameters.
Masterson has said in the past that he's willing to continue extension talks into the season, but GM Chris Antonetti is said to prefer a resolution by the end of Spring Training. Masterson compares somewhat favorably to Reds right-hander Homer Bailey (particularly in terms of age and service time), who signed a six-year, $105MM extension last week, though Bailey had the advantage of coming off his two best seasons. Masterson enjoyed his two strongest campaigns in 2011 and 2013 campaign but struggled in 2012.