The Detroit Red Wings are standing firm on their offer to restricted free agent Andreas Athanasiou.

According to TSN Hockey Insider Bob McKenzie, the Red Wings have offered the 23-year-old a two-year, $3.8 million contract - a $1.9 million average annual value.

McKenzie reports Red Wings general manager Ken Holland met with Athanasiou and his agent, Darren Ferris, in Toronto on Saturday and the two sides made some progress towards a deal.

Athanasiou scored 18 goals and added 11 assists in 64 games with the Red Wings last season. He debuted during the 2015-16 campaign and scored nine goals and 14 points in 37 games. 

Ferris said earlier this summer his client must consider the KHL as an option if the Red Wings didn't increase their offer. McKenzie noted heading to Russia was a legitimate possibility earlier this month if the situation remained in a holding pattern.

The Red Wings are currently $3 million over the cap and will have only $900,000 in space once Johan Franzen is placed on long-term injured reserve. Holland has already said he expects the team to have to make a move to be cap compliant by the season.