Newsday's Arthur Staple said the unrestricted free agent, who turns 38 next month, said he and the team, "couldn't find the middle ground right now, but I never close the door on anything. That's where we're at. I'm still hopeful something will get done."
Nabokov becomes an unrestricted free agent on July 5.
He has been the Islanders' starting goaltender for the past two seasons after being claimed off waivers in January 2011. He did not play for the Islanders during the remainder of the 2010-11 season but played 42 games in 2011-12 and 41 in '12-13, when he went 23-11-7 with a 2.50 goals-against average and .910 save percentage while helping the Islanders advance to the Stanley Cup Playoffs for the first time since 2007.
Nabokov struggled during the Islanders' six-game loss to the Pittsburgh Penguins in the opening round of the playoffs, finishing 2-4 with a 4.44 GAA and a save percentage of .842.
Nabokov has a 335-207-29-47 record with a 2.41 GAA and a .912 save percentage. He won the Calder Trophy as the NHL's top rookie while playing with the San Jose Sharks in 2000-01 and was a First-Team All-Star in 2007-08.
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