ORCHARD PARK, N.Y. -- The Buffalo Bills all but assured themselves of retaining their rights to wide receiver Peerless Price on Wednesday by making him their franchise player.

Price, eligible to become an unrestricted free agent on Feb. 28, is now guaranteed a one-year deal worth $5.01 million, determined by averaging the NFL's top five receivers' salaries. The Bills, eager to keep their prolific offense intact, will now attempt to negotiate a long-term deal with Price.

"We continue to try to find a way to sign Peerless and keep him here in Buffalo,'' team president Tom Donahoe said. "We remain optimistic that this will be accomplished.''

Price's reaction was not as positive.

"He's very, very disappointed,'' said Price's agent, Tim McGee. "He's not a happy camper.''

McGee said Price's frustration stems, in part, from finding out about the Bills' decision from a reporter.

"No one had given us a call to say, 'Hey, this is what we're going to do,''' McGee said. "It didn't go down right.''

McGee maintains Price would have received a more lucrative offer as a free agent.

"He's looking at a $5 million offer but, let's face it, on the open market, it doesn't take a rocket scientist to figure that he would be very well compensated,'' McGee said.

If they fail to reach a long-term deal, the Bills could have Price play out the one-year contract or lift the tag, allowing him to become a free agent. Other teams are allowed to make offers to sign Price, but would have to give up two first-round draft picks to the Bills as compensation.

While Donahoe was adamant the Bills want to retain Price with a long-term deal, several of his league peers speculated on Wednesday evening that using the "franchise" designation on him is aimed at being able to deal the wide receiver to one of the clubs that might have been interested in him as an unrestricted free agent. The Atlanta Falcons, for instance, were poised to ardently pursue Price in free agency.

Buffalo does not have a first-round choice in the 2003 draft, having dealt it to New England last year to acquire quarterback Drew Bledsoe, and by retaining the rights to Price the Bills might have an opportunity to trade him. "That's one way to recoup that (first-round) pick," said one NFC personnel director. "Since the Bills had enough cap room (to use the 'franchise' marker on Price), it's a smart move."

The maneuever also buys the Bills time to negotiate toward a long-term contract. And teams are permitted to rescind the "franchise" tag as well, which the Bills could do if they are caught in a cap squeeze in ensuing weeks.

Price, who completed the final year of a four-year deal, had 94 catches for 1,252 yards receiving and nine touchdowns, placing him among the NFL's top receivers. He was second behind Eric Moulds on the Bills.

The Bills are already in the midst of paying Moulds a six-year $40 million deal, which runs through the 2006 season. It's unusual for teams to have so much money invested on two players at the same position.

By keeping Price, the Bills are projected to be about $4 million under the NFL cap. The team can save another $3.5 million in cap money by releasing tight end Jay Riemersma.

Donahoe has said the Bills will release the seven-year veteran unless he takes a significant pay cut.

Information from ESPN.com's John Clayton, ESPN.com's Len Pasquarelli and The Associated Press was used in this report.