CBS, Letterman Close To Deal For Extension

David Letterman isn't going anywhere soon.

CBS and the late-night funnyman's production company is close to a deal that would extend his stay on the "Late Show" into 2012. That's a two-year contract extension.

Two executives close to the talks, who spoke on condition of anonymity because the deal isn't final, also said Letterman's Worldwide Pants production company will get less money from CBS to make the show. They offered no financial specifics, but said CBS has been trying to cut production costs for as many of its shows as possible with the downturn in television advertising.

There's no immediate word on what that would mean for Letterman's paycheck, reported to be in the range of $30 million to $35 million.