Mike Babcock remains under contract with the Detroit Red Wings until June 30, but that hasn't stopped him from making headway on a deal with a new NHL team.

It was reported Tuesday night that Babcock and the Buffalo Sabres had begun negotiations on a contract which would make Babcock the next head coach of the stories Sabres franchise.

Now comes word that those talks may prove fruitful.

"Still waiting for final word, but seems like things are progressing well for Sabres with Mike Babcock," John Vogl of BuffaloNews.com tweeted.

The Sabres owners, the Pegulas, have very deep pockets and would pretty easily fulfill Babcock's desire to become the highest-paid coach in the NHL.

They've also got a young, talented, developing roster with a lot of pieces expected to turn the proverbial corner in the next season or two. They also swung a deal for Evander Kane prior to the trade deadline last season.

Kane has all the tools to become an unstoppable power forward in the NHL, but he comes with questions of his mentality and consistency.

If there's any coach in the NHL that can coax a star player out of Kane's prodigious talents, it's Babcock.

Still, while things may be moving in a positive direction for Buffalo and Babcock, TSN's Bob McKenzie suggested other possibilities remain, one of which was thought to be dead.

Per McKenzie, the Toronto Maple Leafs are "not entirely out of the picture" as had been reported. The Leafs certainly have the money - the major sticking point to Babcock landing in Toronto would likely be Brendan Shanahan.

Shanahan has full control of the franchise and Babcock is known to be seeking a situation where he was more, if not all, say in personnel decisions.

McKenzie also reports that at least one of Babcock's NHL coaching colleagues "firmly believes" he will remain in Detroit.

Update:

TSN Hockey Insider Darren Dreger is reporting that the bidding war has come down to the Maple Leafs and Sabres and that Detroit is standing firm in their most recent offer:

Update to the Update (2:31): Dreger is now reporting that the Maple Leafs have landed Babcock:

This article has been updated.

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