The right-hander, who was 11-12 with a 3.49 ERA last season, has an arbitration hearing scheduled for Thursday. Bailey has asked for $11.6 million while the Reds have offered $8.7 million. Bailey avoided arbitration last season with a one-year, $5.35 million deal.
"There's a lot of things we have in place. I feel the majority of it is worked out," Bailey told reporters, according to the Cincinnati Enquirer. "It's just the little details and stuff like that -- but we're really close. Us being here and everyone else being in different time zones puts a damper on things."
The Cleveland Plain Dealer reported Sunday night that Bailey was nearing a six-year, $100 million contract with the Reds. He will be an unrestricted free agent after this season if he and the Reds don't agree to a contract.
The Reds train in Arizona, but Bailey's hearing would be in Florida. He said due to the apparent progress he and the team are making in contract talks he hasn't bought a plane ticket.
"Not yet," he told reporters when asked if he made his travel plans, according to MLB.com. "But I also don't have a suit, so I might have to go to Men's Warehouse today."
The 27-year-old Bailey is 49-45 in his career with a 4.25 ERA. He set career bests in innings pitched (209) and strikeouts (199) last season. He also threw his second no-hitter in two seasons.
Bailey became the third pitcher in Reds history to throw a pair of no-hitters, joining Johnny Vander Meer and Jim Maloney.
The Associated Press contributed to this report.