The Suns reportedly offered Bledsoe a four-year, $48 million contract, but he wants a five-year, $80 million maximum contract.
Despite the gap between the two sides, Babby said he believes Bledsoe will ultimately return to the team.
"We'll continue to work as hard as we can within that restricted free agency system established by the collective bargaining agreement. We continue to hope and expect that he will remain in a Suns uniform."
The Suns acquired point guard Isaiah Thomas in a trade with the Sacramento Kings earlier this month. Suns coach Jeff Hornacek said he plans to have a guard rotation featuring Thomas, Bledsoe and Goran Dragic this season.
"We expect Goran and Eric and Isaiah to be pushing the ball up the court like they did last year."
Bledsoe, 24, averaged 17.7 points and 5.5 assists last season. He was limited to 43 games due to a knee injury.
- Paul Palladino