Michael Chandler is inching closer to free agency.

Chandler's Bellator contract is set to expire imminently, sources told ESPN. Per the terms of the contract, the sources were not at liberty to discuss exactly when the contract runs out.

However, according to those same sources, Chandler's management and Bellator are currently engaged in what was described as productive negotiations, though no deal is close to being finalized at the moment.

Sources say Chandler, 32, is open to staying with Bellator but also is open to testing the waters elsewhere, most notably the UFC, where a fresh crop of opponents potentially await.

Long considered one of the best lightweights in the world, Chandler has been with Bellator since 2010. His current record is 18-4, with his most recent win coming against Brandon Girtz in April, and his 15 wins inside the Bellator cage are the most in the promotion's history.