BEREA, Ohio — Browns President Mike Holmgren revealed Thursday that talks to extend Peyton Hillis' contract are at a standstill and that the team is set to let him become a free agent after the season. 
"I don't think anybody pushed anybody against the wall on contract talks and said, 'We're done,' but right now, it's kind of quiet," Holmgren said. "Let's let Peyton play, let the dust settle and see what happens."
Holmgren indicated that the Browns are prepared to let Hillis become a free agent and then try to sign him on the open market. Another option would be to make him the franchise player, which would pay him the average of the top five players at his position for 2012 -- probably more than they would want to pay.
"Because of the nature of these types of negotiations, and if Peyton has a good year, he'll have opportunities now because you'll enter in free agency -- legitimate free agency," Holmgren said. "Are we going to be a player in there to try and keep him here? Absolutely. Absolutely. I told him that yesterday."
Holmgren said the two sides haven't cut off all communication, but they are in a holding pattern.
"No one has called off negotiations. No one has said, 'OK, let's wait until the end,' " Holmgren said. "It's still kind of in that floating area where you're waiting for a phone call, or you're going to make a phone call, or whatever. But in the meantime, I talked with Peyton yesterday."
"We talk weekly, and I said, 'It's important that you just kind of go out there and do the best that you can do, get healthy, I'm rooting for you and, selfishly, for the team, certainly.' I like him. He's a good guy, so that's where it is."
He said he stressed to Hillis -- who missed practice Wednesday and Thursday with a pulled hamstring suffered in the Raiders game -- that the best way to increase his value is to play well.
"I have always encouraged players in this situation -- I've had any number of players in this type of category -- 'Now what has to happen is you have to have a great year to reach these goals. It's to your benefit. It's to the club's benefit.' And there we are."
He added that he had no intention of trading Hillis by Tuesday's deadline. Hillis is in the final year of a deal that pays him $600,000 this season.
"There's no way I'm trading Peyton Hillis," Holmgren said. "There's just no way that was ever going to happen. Why would I do that? Why would I trade one of our best players? I wouldn't do it."
He added that "the drama of his sickness and injuries and all that kind of stuff" didn't help the situation.
Holmgren declined to give details of just how far apart the two sides are, but he acknowledged, "We tried to sign an extension, and there was a difference of opinion. Now, was everyone trying? Yes, from their point of view, we were all trying to get something done. But it didn't happen, or hasn't happened, so there you are."
The starting point in negotiations by Hillis' agent, Kennard McGuire, was extremely high, a league source said. But then the two sides exchanged proposals, and McGuire's asking price came down some. Still, it wasn't anywhere near what the Browns were willing to pay, and the two sides remain far apart.
Now, Hillis is suffering from the pulled hamstring, and it's uncertain when he will be back. He ran in the pool on Thursday, but his availability for Seattle is unknown. As it is, he has rushed for 211 yards and is on pace for 675 this season -- 502 fewer than he had last year.
Regarding the impasse, Hillis' agent said, "I have no comment."
http://www.cleveland.com/browns/index.ssf/2011/10/cleveland_browns_president_mik_10.html
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