The Nuggets have offered head coach George Karl a multiyear extension.

However, sources told FanHouse that the two sides are still far apart on an agreement.

The offer is reportedly for three years and a little more than $11 million, but the third season isn't guaranteed.

The average annual amount is around what Karl is making right now.

"Both parties are working hard and trying to use the end of the year as a point of a soft deadline," Karl's attorney,  Bret Adams said.