"Just as a contract extension with star cornerback Champ Bailey was drawing near, the Broncos decided to pull out of negotiations.

The move increases the likelihood that Bailey is playing in his final season with the Broncos.

"I am disappointed, because I want to be here," Bailey said. "We know that, they know that. What's the issue here, really?"

In the final season of a seven-year contract, Bailey, 32, can become an unrestricted free agent at the end of the season.

The Broncos and Bailey's agent, Jack Reale, were close to hashing out a four-year contract extension that would have kept the nine-time Pro Bowler with the team through 2014.

Bailey said he wasn't crazy about the deal, but he was willing to take it because he wants to stay in Denver.

But after submitting an offer to Bailey late last week, the Broncos said Tuesday they were postponing talks. Broncos coach Josh McDaniels talked to Bailey this week, telling him he still hopes a deal can be worked out later.

"We were scheduled for a discussion on the contract offer they had recently e-mailed me," Reale said. "Before we had a chance for discussion, I received a call saying they wanted to put it off and wait until the end of the season."