The Globe and Mail reports that the NHL and NHL Players' Association have agreed on a formula for a salary-cap system based on team-by-team revenue.
According to the Globe's league and player sources, a salary floor and cap will be based on a percentage of each NHL team's revenue. The paper adds that in the first year - based on revenue projections by both sides - the salary cap will range from $34 million to $36 million US, with the floor from $22 million to $24 million US.
The salary-cap issue was seen as the biggest hurdle in talks for a new collective bargaining agreement.
The Globe also reports that the formula calls for a dollar-for-dollar luxury tax to kick in at the halfway mark between the floor and the cap. If the floor of the lowest team is $22 million US and the cap on the highest team is $36 million US, then the 'tax level' will be $29 million US.
The formula would allow wealthier teams to spend a bit more money, but would also bridge the large gaps in spending between higher payroll teams and lower payroll teams.
Union spokesperson Jonathan Weatherdon, however, said the Globe's report was premature.
"The NHLPA and NHL discussions this week continue to cover a range of issues such as controls on team salaries, revenue sharing, Olympic participation, the amateur player draft and player retention rights," Weatherdon said. "While the parties continue to have discussions to reach a common ground no agreements have been reached."
Small group labour talks between both sides ended late Tuesday night and resume today in New York with a larger group meeting.
Both sides have carried over the momentum from last week when 34 hours of talks were described as 'progressive' from both sides.
There are several issues to iron out, but sources in both camps told the Globe there's a chance a deal could be done before July. Still, both sides also concede there are potential pitfalls that could prevent an agreement from being reached.
Today's session is the 21st meeting between the two sides since the season was cancelled Feb. 16.
Files from CP and The Globe and Mail were used for this report.