It appears that Dany Heatley will be staying in Ottawa for the time being.
TSN reported early Wednesday morning that Heatley refused to waive his no-trade clause in order to facilitate a trade to the Edmonton Oilers.
There has been confusion surrounding a $4 million bonus due to Heatley on July 1. Originally, it was suspected that Ottawa owed Heatley the bonus if the winger was still on the roster at 12:01 am ET on July 1. However, TSN reported Wednesday morning that as long as Heatley is moved by midnight, the team acquiring him will assume the bonus payment.
NHL Deputy Commissioner Bill Daly supported TSN's report in a statement to Sportsnet.
"[Heatley] can be traded at any time," Daly said. "My view is obligation on signing bonus installment can be transferred any time up to midnight [Wednesday] night".
Sources confirmed to ESPN.com's Pierre LeBrun that both teams were talking Tuesday night. Penner was the key Oiler that would have been going the other way for Heatley, who asked for a trade in early June.
Heatley became disgruntled with his role under new coach Cory Clouston, who took over for Craig Hartsburg in February. The two-time 50-goal scorer was demoted from the first power-play unit to the second team and expressed his dislike with the move with the team in end of season meetings.
Heatley signed a six-year, $45 million deal in October 2007 after the Senators reached the Stanley Cup finals the previous June. He will count $7.5 million against the cap in 2009-10.
Penner joined Edmonton as a restricted free agent after signing a controversial offer sheet in the summer of 2007, but had since fallen out of favor with then-head coach Craig MacTavish.
Heatley scored 39 goals and 72 points in 82 games last season.
Information from ESPN.com's Pierre LeBrun was used in this report.