Mike Babcock told reporters on Thursday that he is not on the verge of signing a contract extension with the Detroit Red Wings and doesn't expect to do so during the season.

The Windsor Star reported earlier in the day that the Red Wings were expected to announce a new contract for Babcock soon.

“Guys, that’s like a fantasy world or something like that,” Babcock told reporters after practice on Thursday. “Ken Holland and I talked before the year. We agreed we wouldn’t do this during the year. Our team is doing good, our team is playing good. I like the way we’re playing. We don’t need any distractions.”

TSN Hockey Insider Dreger reports the Red Wings are still expected to offer Babcock a contract at some point that would make him the highest paid coach in the league.

The 51-year-old coach won a Stanley Cup with the Red Wings in 2008 and has guided Team Canada to two Olympic gold medals.