Saints tight end Jimmy Graham is likely out for the rest of October, writes Michael David Smith of Pro Football Talk (citing Ian Rapoport of NFL.com). Graham, who suffered a shoulder injury in last week’s win over Tampa Bay, is reportedly out for the next 2-3 weeks. Although the Saints are on their bye this week, that 2-3 week timetable means that he will certainly miss the next two games against the Lions and Packers. After the Packers game, the Saints will take on Carolina on a short week, so he may not be available for that divisional matchup.

Graham is putting together a typically excellent season, with 34 receptions, 376 yards, and 3 TDs. He will be sorely missed as the Saints attempt to rebound from their 2-3 start.

The Saints and Jimmy Graham are “closing in” on a long-term contract agreement that would make the tight end the highest-paid player at his position in NFL history, reports Adam Schefter of ESPN.com (via Twitter). In spite of Graham’s decision to appeal an arbitrator’s ruling on his positional designation, there’s optimism that a deal will be agreed upon by tomorrow’s deadline, according to Schefter.

As I wrote earlier this afternoon, the fact that Graham’s camp appealed arbitrator Stephen Burbank‘s decision that he should be considered a tight end rather than a receiver for franchise tag purposes isn’t necessarily a sign that a long-term extension is unlikely. That appeal just ensures that Graham can attempt to maximize his 2014 earnings, should a multiyear deal not be reached — it could also serve as leverage in talks with New Orleans, since the team would have to account for the fact that a three-person appeals board could overrule Burbank’s decision, making Graham’s franchise tag worth $12.312MM rather than $7.035MM.

In any case, it appears that appeal will be moot, since Graham’s camp and the NFLPA believe the standout pass catcher will have a deal in place with the Saints by tomorrow at 3:00pm central time, tweets Mike Florio of Pro Football Talk.

When I broke down Graham’s situation this morning, I predicted that the two sides would negotiate an extension worth in the neighborhood of $10MM+ per year, with close to $20MM in guaranteed money, assuming it’s a long-term deal.

3:42pm: In a somewhat unexpected turn, Graham has officially appealed Burbank’s ruling of his franchise tag position, according to Ian Rapoport of NFL.com (via Twitter). A three-person appeals board will now revisit the case and either confirm or overturn Burbank’s decision, which stated that Graham should be considered a tight end rather than a wide receiver.

Although not appealing would have been a stronger indication from Graham’s camp that multiyear negotiations are progressing well, the appeal doesn’t necessarily rule out a long-term agreement by tomorrow afternoon. The threat of Burbank’s decision being overturned may serve as leverage for Graham’s side in contract discussions — if the two sides strike an agreement on an extension tomorrow, that appeal could be dropped.

2:28pm: As I outlined this morning, Jimmy Graham‘s camp has until 3:00pm CT today to appeal the decision made by arbitrator Stephen Burbank earlier this month, which assigned the Saints star the tight end franchise salary ($7.035MM) rather than the wide receiver tag ($12.312MM). However, a source tells Mike Florio of Pro Football Talk that an appeal isn’t currently expected.

When I discussed the Graham situation today, I pointed out that an appeal from Graham’s camp could reduce the likelihood of a long-term agreement between the tight end and the Saints. After all, there’d be little reason to appeal the 27-year-old’s 2014 franchise salary in an effort to gain the extra $5MM+ if he were simply going to play under a new long-term deal anyway. Conversely, if no appeal comes, it could signal that the two sides are moving closer to a compromise.

Of course, there are other reasons why Graham’s camp may not be inclined to file an appeal. They may be pessimistic that Burbank’s ruling would have a chance at being overturned, or perhaps turning down the opportunity to appeal represents a sign of good faith as negotiations between the two sides continue. In any case, we should soon find out definitively whether or not an appeal is made, and within another 24 hours, we’ll learn whether Graham and the Saints can strike a multiyear extension to keep him in New Orleans.