"We remain in contact," Wings GM Ken Holland told the News. "We expect Homer to make a decision before the end of the month."
Holmstrom has reportedly been training this summer, but the longer he takes in making his decision, the less likely it appears that he will return to the lineup.
The Wings also have 16 forwards under contract and only plan on keeping 14 on the roster.
In 74 games with the Wings last season, Holmstrom posted 11 goals and 13 assists for 24 points, and 40 penalty minutes.
In other news, restricted free-agent forward Justin Abdelkader is still unsigned as he rejected the opportunity for arbitration last month.
Abdelkader's camp and Wings management keep negotiating a new deal.
In 81 games last season, Abdelkader collected eight goals and 14 assists for 22 points.