His current contract can be totally renegotiated. Not going to say it will happen, but as long as both parties agree the contract can simply be "torn up" and replaced with a completely new one. It has happened many times in the past, usually with a player on a high dollar contract that wants to prove they can still play. The restructure earlier this year simply bought them more time to make a final decision.

He's probably still gone and I wouldn't blame him, like rez has pointed out, but it's not a done deal.