According to Schefter, the Patriots quarterback would only accept a suspension for failing to cooperate with the investigation conducted by Ted Wells.
In his decision to uphold Brady's four-game suspension, NFL commissioner Roger Goodell alleged that Brady obstructed Wells's investigation by destroying his cell phone, which contained thousands of text messages sent around the time of the Patriots' AFC Championship Game against the Indianapolis Colts.
Brady and Goodell met before a judge at a settlement hearing last week, during which they did not reach an agreement. The two parties engaged in additional settlement talks on Tuesday to no avail, and representatives of the two sides are scheduled to appear in court again on Wednesday.
Brady does not plan on attending Wednesday's hearing.
The NFL has said it will not agree to a settlement unless Brady admits to having knowledge of the Patriots' deflating game balls used during the AFC Championship Game.
Judge Richard M. Berman, who has presided over the hearings, is expected to hand down an order by Sept. 4 if no settlement it reached by that date.
- Erin Flynn