The news--reported by Jon Heyman, who was the first to break the initial death of the deal--comes six hours after the initial deadline for negotiations passed, and over three hours after Gonzalez was said to have returned to San Diego.
While right now it does not appear as if the team has agreed on an extension with Gonzalez, many reporters are of the opinion that the two sides have worked out the parameters of a deal, and will wait until after spring training to announce it. This would allow the Red Sox to keep their luxury tax figure low, potentially avoiding millions of dollars in penalties.
Heyman--who appears to really be on the ball tonight--has said parameters set at around seven years at $23 million per year. This in addition to the one, cheap year left on his contract. If this is the case, it seems a fair compromise between the two sides which started out approximately two years and $60 million apart.
The Red Sox will also get the added benefit of being able to check out Gonzalez' surgically-repaired shoulder in game action. A significant bonus before signing a contract of such magnitude.