Representatives for right-hander Matt Cain have engaged in discussions with the Giants over the last several days, according to a Bay Area newspaper report.
A story published on the blog of San Jose Mercury news reporter Andrew Baggarly quoted team vice president Bobby Evans as saying it was "very healthy dialogue and it's ongoing."
In the story, Evans confirmed that the Giants had spoken with Cains representatives in recent days.
Cain, 27, will earn 15 million in 2012, but will be a free agent at the end of the year.
Cain signed a three-year, 27.5 million contract extension in 2010. The deal paid him a 1 million signing bonus, 4.25 million in 2010, 7 million in 2011 and 15 million in 2012. He was due to make 4.25 million in 2010, the final season of a 9 million, four-year contract that included a 6.25 million team option for 2011.
Wednesday, San Francisco and Ryan Vogelsong agreed to an 8.3 million, two-year contract. The journeyman became one of the team's most reliable starters and an unlikely All-Star last season.
According to CBSSports.com baseball writer Jon Heyman, Vogelson's contract will pay him 3 million in 2012 and 5 million in '13, with a 6.5 million club option in '14 and a 300,000 buyout.