Report: Penguins staying in Pittsburgh

? The Penguins’ future is in Pittsburgh, not Kansas City or Las Vegas, according to a television report.

The team has reached a deal with city, county and state officials on financing for a new arena, KDKA-TV reported Monday night.

Citing unidentified sources, KDKA said the deal is “done” and will be announced sometime before today’s game against the Buffalo Sabres at Mellon Arena.

Penguins officials did not immediately return calls for comment, nor did a spokesman for Allegheny County Executive Dan Onorato.

A spokesman for Mayor Luke Ravenstahl said he knew nothing of a deal.

“I never heard that. I heard nothing like that,” spokesman Dick Skrinjar said.

A spokesman for Gov. Ed Rendell refused to confirm the agreement.

“I can’t confirm a report of any settlement,” Rendell spokesman Chuck Ardo said. “The sides have communicated since last Thursday. This is an ongoing process.”

But the television station reported the only minor details needed to be resolved for a deal to build an arena that, according to sources, will be more expensive than the $290 million the Penguins projected.

Rendell has said he thought the arena could be built for about $270 million, and the two sides were said to be haggling over how and whether to add an extra $20 million to a bond issue needed to fund the arena.

KDKA reported the bond issue questions have been settled, along with other details, clearing the way for a new arena.

The Pittsburgh Post-Gazette, citing unidentified sources, says the deal includes a 30-year lease and calls for the arena to be completed by the start of the 2009-10 season. The Penguins will pay $3.8 million a year for construction, and another $400,000 annually for unspecified capital improvements, the newspaper said.

On March 5, team owners Mario Lemieux and Ron Burkle issued a letter, declaring the negotiations at an impasse despite what they said was the team’s offer to pay $120 million toward a new arena over 30 years, $500,000 for a parking garage, plus agreeing to pay for cost overruns.