That report is from Matthew Cerrone of MetsBlog. The sticking point: the Mariners want Jon Niese, but Omar is unwilling to trade him.
I think I have to side with Omar here. Given that Lee is going to hit the market this winter, why not wait it out, be aggressive, and try to get him then, thereby giving the Mets a pretty spectacular rotation heading into 2011? By giving up Niese for him and then extending him you’re basically paying for him twice.
If the answer is that they wouldn’t be willing to pay what Lee would be asking for a long term deal, they shouldn’t be talking to the Mariners about him anyway. They should be sticking with younger, cheaper talent like, say, Jon Niese.