San Francisco and Denver have the parameters of an agreement in principle on a trade for Colin Kaepernick, sources said, but before any deal can be completed, the quarterback and the Broncos still have to agree on a restructured contract, and the two sides have not been close.

Kaepernick and the Broncos continue talking, trying to see if they can bridge their contractual differences, sources said.

Kaepernick is due to make $11.9 million in base salary this season and has a $15.9 million salary cap number for 2016. The Broncos want a much friendlier cap number and contract, and need to see whether they can get it.

Kaepernick and Broncos executive vice president of football operations/general manager John Elway have met at least once, as the San Francisco Chronicle reported, trying to see if the two sides can work out their differences.

The agreement on trade compensation between Denver and San Francisco will not be an issue in any potential trade for Kaepernick, sources said. The compensation is expected to be some type of mid-round pick.

The real question is whether the Broncos and Kaepernick can work out a restructured deal; the Broncos and 49ers already have the parameters of theirs in place.