"The Blues and the agent for T.J. Oshie are negotiating a contract extension that could have the forward signed before the start of free agency Friday, when he'll be permitted to receive offer sheets from other teams.

On Monday, Blues general manager Doug Armstrong said that there had been continual dialogue with Matt Oates, Oshie's agent, but "not to the point where there's comfort with the other side's position."

It's not known how much progress has been made, but Oates told the Post-Dispatch on Wednesday that "Doug and I have been talking a lot over the past couple of days, and things are going well."

Oates declined to comment further, but there is belief that a deal could be struck between Oshie and the Blues before the free-agency window opens at 11 a.m. (St. Louis time) Friday.

In April, Oshie wrapped up his third season with the Blues, in which he has 44 goals and 121 points in 182 games. Last year, while missing 31 games because of a broken ankle, Oshie totaled 12 goals and 34 points in 49 games and had a plus-minus rating of plus-10.

Even if Oshie hits the market on Friday, the Blues retain his rights and could match any offer given to the winger. The compensation for the Blues should they decide not to match would depend on the dollar amount of the contract he signs with another team.

Oshie made $1.3 million in 2010-11, including $400,000 in bonuses, according to Capgeek.com.

If he were to sign an offer sheet with another club worth between $1,034,249 and $1,567,043 per season, the compensation would be a third-round pick. An offer sheet between $1,567,043 and $3,134,088 per year would net the Blues a second-round pick, while an offer sheet between $3,134,088 and $4,701,131 per year would bring the Blues a first- and third-round pick."