The Calgary Flames have signed restricted free agent forward Ryan O'Reilly to an offer sheet, the team announced Thursday.
O'Reilly, 22, has not played this season and contract negotiations with the Colorado Avalanche have been at an impasse for weeks.
"Under the rules pertaining to an offer sheet, we will allow the process to transpire," Flames general manager Jay Feaster said in a statement. "We will not provide any further comment until the process is complete."
According to TSN's Darren Dreger, O'Reilly's contract from the Flames is for two years, $10 million (an average annual value of $5 million). He would receive a $1 million salary and $2.5 million signing bonus this season, and a $6.5 million salary next season.
Colorado has seven days to match Calgary's offer and retain O'Reilly, or receive Calgary's first- and third-round picks in the 2013 NHL Draft as compensation.
If the Avalanche match the offer, they cannot trade O'Reilly for a full year from that date.
"The Avalanche organization was notified of the offer sheet earlier this afternoon," the team said in a statement. "Per the Collective Bargaining Agreement, in the case of an offer sheet, NHL teams have seven days to either match the offer or accept compensation. The Avalanche will have further comments when a decision is made."
The teams play each other in Colorado on Thursday.
O'Reilly led the Avalanche with a career-high 55 points last season. In 236 games over three seasons, the center has 39 goals and 68 assists (107 points).
The 2011-12 season was the last on a three-year, entry-level contract O'Reilly signed prior to the 2009-10 season. He was the No. 33 pick in the 2009 draft.
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