People familiar with the matter told WSJ that negotiations have begun just days after Kelly's comments on her 9 a.m. hour of the Today show defending blackface ignited swift backlash, both inside and outside the network.
An NBC News article Friday, citing unnamed sources, explained that Kelly is still in talks with the channel about her future.
The announcement follows reports that Kelly was on the way out.
In some corners, Fox News insiders were enjoying a certain schadenfreude in Kelly's NBC failure.
The network on Friday again aired a repeat of "Megyn Kelly Today" just as it did Thursday following this week's controversy.
On Wednesday, she opened her live show with a mea culpa.
'"Megyn Kelly Today' is not returning", NBC News said in a statement.
Kelly took it even further than King and endorsed the idea of fat shaming people, as a way to get them to lose weight.
Kelly is the middle of a 3-year contract at NBC at $23 million per year. "I learned that given the history of blackface being used in terrible ways by racists in this country, it is not OK for that to be part of any costume, Halloween or otherwise", she said.
"Truly, you do get in trouble if you are a white person who puts on blackface for Halloween, or a black person who put on whiteface for Halloween", Kelly continued. One of Kelly's first interviews on her NBC show was with the cast of the TV show "Will & Grace".
Other sources said that the Friday talks wound up being over-the-phone. And whatever her next destination is, let's hope she'll go back to her roots and do what she does best; sharp, sometimes biting, political analysis. And NBC News chairman Andy Lack showed her no mercy either, saying that there was "no place on our air or in this workplace" for her comments in internal remarks to staff that were leaked.
"I learned that given the history of blackface being used in bad ways by racists in this country, it is not OK for that to be part of any costume, Halloween or otherwise".