The Dallas Cowboys are on the verge of agreeing to a two-year contract with former Detroit Lions linebacker Justin Durant that will be signed once the team creates more cap space, a team source told ESPN NFL Insider Adam Schefter.

The Cowboys have denied agreeing to terms with Durant, as NFL teams are prohibited from even offering contracts to players until they have cap space to do so, per the league's collective bargaining agreement.

The Cowboys have a similar agreement with safety Will Allen, a source told ESPN. Allen started eight games last season for the Pittsburgh Steelers.

The Cowboys have only $102,000 in salary-cap space. The team is looking to rework the contract of quarterback Tony Romo and reach a new deal with defensive end Anthony Spencer to clear more salary-cap space.

Dallas is in talks with the agents of both players.

Durant visited the Cowboys' facilities on Monday and took a physical for the team.