According to reports, the Seahawks asked Peterson to take a pay cut and he refused.
Per Sando, Seattle has around $21 million in salary-cap space tied up in linebackers Peterson, Lofa Tatupu and Leroy Hill, with hill recently receiving an $8.3 million franchise tender and still not signed to a long-term deal.
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According to Sando, Peterson's deal counts $8.8 million against the salary cap if he's on the team, and $4.6 million if the Seahawks release him.
Apparently, the Seahawks believe Peterson's play has fallen off enough that he doesn't warrant the contract, although he did make the Pro Bowl last season as an injury replacement for Derrick Brooks.
Speaking of Brooks, he is available and Seattle defensive coordinator is very familiar with the former Tampa Bay linebacker because of his time with the Bucs, so the Seahawks could make a play for Brooks.
Also, Seattle is likely interested in Wake Forest linebacker Aaron Curry, who reportedly will visit the Seahawks on March 26.
However, it's unlikely Curry will get passed the Kansas City Chiefs, who have the No. 3 overall pick.
If Peterson is released, it's a curious decision by Seattle because it weakens a position of strength on the team. However, perhaps the Seahawks believe they can fill Peterson's role with a cheaper alternative and need the cap space to sign someone like fullback Leonard Weaver or other players through the draft.