New York reportedly plans to apply the franchise tag if a deal to retain the fifth-year defensive end cannot be reached before the deadline.
The Giants are working to secure Pierre-Paul before the five-year veteran at defensive end becomes an unrestricted free agent on March 10. The deadline to apply the franchise tag is March 2.
While the two sides have yet to reach an agreement, head coach Tom Coughlin has said that the team is very serious about re-signing Pierre-Paul.
"Well, we are convinced that we want him back, without a doubt,” Coughlin said, according to the New York Post. "The goal is for him to be a Giant and play as a Giant forever, and retire as a Giant...How that works out is another issue."
According to Schefter, the Giants want to sign a multi-year extension with the 26-year-old. Giants general manager Jerry Reese confirmed last week that the two sides have been in discussions.
"We're talking, but that is all I'm going to say about that," Reese said, according to NJ.com. "It's really not appropriate to really talk about where we are in respect to that, but we are talking."
Pierre-Paul, taken with the No. 15 pick in the 2010 NFL draft, recorded 76 tackles, 12.5 sacks and three forced fumbles for the Giants last season. He has collected 276 tackles, 42 sacks, two interceptions and two touchdowns during his five-year career.
In four of his five seasons, all with the Giants, he has appeared in all 16 games.
Applying the franchise tag to Pierre-Paul will reportedly cost the team between $14.5 and $16 million, depending on final salary cap numbers. Using the tag on the defensive end would allow the Giants to continue working on a long-term with Pierre-Paul until this summer.
According to the New York Post, New York would use the non-exclusive franchise tag, meaning Pierre-Paul could receive offers from other teams, but those teams would have to give up two first-round picks in order to sign him.
The Giants finished last season with a 6-10 record and in third place in the NFC East. New York has not won more than ten games in a season since 2010.