Following the club’s first round playoff loss at the hands of the Winnipeg Jets, Oilers GM Ken Holland admitted at his season ending press conference that he wants to re-sign veteran goaltender Mike Smith for a third season. At age 39, Smith is likely to only sign a one-year deal with the club, and could be entering the final season of his career.

According to David Pagnotta of ‘The Fourth Period‘, talks between the Oilers and Smith are underway.

“Contract negotiations between the Oilers and G Mike Smith are ongoing,” Pagnotta tweeted on Friday afternoon. “I believe an offer has been tabled by the Oilers, but Smith’s camp will likely counter.”

The likely sticking point in a Smith negotiation is money. Smith carried an AAV of $2,000,000 in 2020-21, but had his best season in a decade. Smith went 21-6-2 with a .923 save percentage and a 2.31 GAA.

Smith’s first contract with the Oilers, also a one-year deal signed on July 1st, 2019, carried an AAV of $3,750,000. Smith earned a $2,000,000 cap hit that season and had another $1,750,000 in performance bonuses, per Cap Friendly.