Thompson is seeking a maximum deal paying upward of $15 million per season, a source said. The Warriors have improved their offer to get in the vicinity but have not offered a full maximum contract, sources said.
If Thompson and the Warriors do not come to terms on an extension by the Halloween deadline, he will be a restricted free agent next summer.
Warriors owner Joe Lacob has yet to become comfortable offering a maximum extension, sources said. A source close to Thompson said any offer shy of a max would be "absurd" considering his improvement and the influx of money to come to NBA teams from the next television contract.
Thompson averaged 18.4 points, 2.8 3-pointers, 3.1 rebounds and 2.2 assists per game last season and also has a reputation as a strong defender. He helped his stock with a strong performance for the gold-medal winning USA Basketball team during the 2014 World Cup in Spain. Thompson is slated to make $3 million this season.
The Minnesota Timberwolves had strong interest in acquiring Thompson in a trade for Kevin Love before dealing him to the Cleveland Cavaliers, but the Warriors wouldn't budge.
"As far as contract stuff, I try not to worry about it, because then it will affect your game," Thompson told reporters on Friday. "I'll just go out there and do what I do, and I know it will take care of itself."