"There have been exchanges, but I would not consider them progress," Bengals president Mike Brown said.
Dillon and his agent, Marvin Demoff, made a counteroffer Wednesday, demanding more money. Brown said he anticipated that would happen after the Tennessee Titans extended running back Eddie George's contract for six years at $6 million per year.
Dillon has rushed for more than 1,000 yards in each of his three seasons with the Bengals. He soured on the team at the end of last season and said he wanted to play for somebody else.
Brown said Tuesday that George deserves more money than Dillon because the Titans have won more games and played in a Super Bowl with George. The Bengals are 14-34 in Dillon's three seasons.
The team has been trying to re-sign Dillon, a restricted free agent, before training camp opens Friday in Georgetown, Ky.
"They might surprise us," Brown said. "I've seen those surprises."
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