According to Garafolo, extension talks are expected to pick up in the coming days and there’s still hope that the two parties could reach a deal.
Schultz stands to make $10.9 million fully guaranteed on the franchise tag this season.
The two sides now have until July 15 to work out a long-term deal, otherwise, Schultz will have to play out the 2022 season on the tag.
Schultz, 25, was drafted by the Cowboys in the fourth round out of Stanford in 2018. He played out the final year of his four-year, $2.91 million deal that included a signing bonus of $452,356.
In 2021, Schultz appeared in all 17 games for the Cowboys and recorded 78 receptions on 104 targets for 808 yards and eight touchdowns.