Posted by Sabrina B. @gametimegirl

The Indianapolis Colts have designated quarterback Peyton Manning as their franchise, a source told ESPN senior NFL analyst Chris Mortensen.

Manning will be due a salary over $23 million under the present formula. The Colts say they will continue to work on a long-term contract with Manning.

It was reported in late January that the two sides had met, with the Colts, according to a source, making their first proposal for the three-time league MVP.

It has been expected that whenever Manning and the Colts do agree on a new deal it will be the richest ever for an NFL player.

By franchising the Super Bowl XLI winning quarterback, the Colts agree to pay the average of the top salaries at his position in 2011.

With a new collective bargaining agreement still being negotiated, there is a chance the franchise designation will cease to exist after the current CBA expires on March 4.

-ESPN