Compromise might preempt Owens arbitration decision

The Terrell Owens saga has taken yet another curious turn.

Multiple sources within the T.O. arbitration hearing told SportsLine.com that the parties involved are discussing different settlements to resolve the situation. One scenario could include the 49ers returning the Ravens' second-round pick while receiving another pick -- likely a third-rounder from whichever team signs the Pro Bowl wideout.

In addition, the Ravens would receive another compensatory pick for their trouble in this escapade.

"I'd say there's a 50-50 chance of something like this getting agreed upon to present to the player," said one source. "There's nothing concrete yet but that's one scenario, along those lines."

Why would the Niners agree to such a settlement? They are ensured of receiving a draft pick for a player they were going to lose anyway. If the case goes to the special master's decision, they could lose out on getting anything in return other than a compensatory pick given by the league when teams lose free agents. Other settlement scenarios could also arise.

Terrell Owens' destination is in limbo right now.(Getty Images)

Owens has a deal in place with the Eagles, but they may not be willing to part with the draft choice named in the settlement. Their original offer called for a fifth-round selection as well as receiver James Thrash. Niners GM Terry Donahue gave the Eagles a list of players other than Thrash -- including guys such as DT Corey Simon, safety Michael Lewis, DL Brandon Whiting among others -- who could make the trade happen, but all players were denied by Philly.

Union chief Gene Upshaw, however, said that while he was unaware of the terms of any settlement, nothing could be finalized until after he personally spoke with the player.

"Before any settlement is reached or finalized I have to talk to T.O.," said Upshaw shortly after returning to his office from the hearing. "I have not had an opportunity to talk to T.O. yet. I have placed a call to him and I'm waiting to hear back."

As for the hearing itself, neither side seems to have a handle on which way the special master is leaning.

"I feel good about our case," said Upshaw. "We have a strong position and hopefully the arbitrator will see it our way. The scenario is simple. If the special master rules in T.O.'s favor, he'll be a free agent. If he rules in the 49ers' favor, he's a Raven unless something else happens. "But I can assure you that no settlement has been decided upon yet."