From MLBTR:

The Reds have had preliminary extension talks with some of their arbitration eligible players, Cincinnati general manager Walt Jocketty acknowledged. "Nothing has gotten really serious yet,Ē the GM said, according to Mark Sheldon of MLB.com. However, the Reds are interested in locking up Mat Latos and Homer Bailey to multiyear contracts.

"We've discussed that," Jocketty said. "We're taking a look to see if it works. If not, we'll go year to year. We'd prefer something long term eventually."
http://www.mlbtraderumors.com/2013/0...xtensions.html