The Dallas Cowboys have officially picked up Micah Parsons' fifth-year option, securing his services for the 2025 season, but have not yet initiated discussions for a contract extension.

As of February 2025, there have been no talks regarding Parsons' extension, despite expectations that negotiations would commence soon.

The team anticipates a significant increase in the salary cap for 2025, projected to rise to between $277.5 million and $281.5 million, which could facilitate future contract discussions.

Parsons' projected market value is around $33.7 million per season, positioning him to potentially rival Nick Bosa's record-setting five-year, $170 million contract.

Having been named the 2021 NFL Defensive Rookie of the Year and earning Pro Bowl selections in each of his first four seasons, Parsons had an impressive performance last year with 12 sacks in just 13 games.

The Cowboys are looking to rebound after a disappointing 7-10 record in the previous season, and securing Parsons long-term is a key part of their strategy.

Despite the lack of a finalized deal, Parsons has stated he does not intend to hold out if negotiations are not completed by training camp.

However, if contract talks are significantly delayed, he may reconsider and opt for a holdout, similar to CeeDee Lamb's actions last year.

Currently, the Cowboys have an estimated $2.5 million in salary cap space, which complicates their ability to extend Parsons' contract quickly.

Typically, the Cowboys wait until the NFL Scouting Combine to begin negotiations with player agents regarding contract extensions.

Parsons has emphasized the importance of maintaining a strong team around him, indicating a preference for team success over being the highest-paid player.

He has expressed optimism about the upcoming salary cap increase, which he publicly celebrated, suggesting that it may positively impact his contract situation.