Tyler Dragon of USA Today reports Monday that Bates has no plans to sign the one-year, $12.91 million tag or play this season without a long-term deal.
The sides have hit an impasse in talks, according to Dragon, and they have until July 15 to work out a long-term deal.
The Bengals want to keep Bates long term, and Bates wants to remain long term. But the team did cover its bases by drafting safety Daxton Hill and defensive back Cam Taylor-Britt in the first two rounds and adding safety Tycen Anderson at No. 166 overall.
Bates totaled at least 100 tackles three of the past four seasons.
In his four-year career, Bates has 408 tackles, 35 pass deflections and 10 interceptions in 63 career games.